Australians Abroad
How can Australians who are working abroad, and plan to return home one day, and those looking to move to Australia make significant savings by utilising offshore investment bonds and investment-linked life policy wrappers?
Quite simply by setting up the plan whilst you are non-Australian resident, and keep it running for at least ten years!
Thus, even when returning to Australia there are huge tax benefits to be enjoyed.
Read below to find out more
Historically, the Australian Tax Office (ATO) had very defined rules and regulations as to how foreign insurance bonds were treated in respect of capital gains for tax residents in Australia.
However, this regime being part of the Foreign Investment Fund (FIF) rules was repealed by the ATO in July of 2010.
Why the change?
A main reason is that non-Australians planning to move to Australia, and for those Australian nationals returning home, faced somewhat severe tax treatment given their typically foreign investment plans.
FIF rules were actually resulting in Australia being considered undesirable as a location in terms of taxation and overall treatment of wealth.
Thus, the repeal of FIF legislation has meant that offshore insurance wrapped investment bonds have become a very desirable tool in the future tax planning for those wishing to reside in Australia. This legislation falling under section 26AH of the Australian Income Tax Assessment Act of 1936.
The correct structured and specialised planning can result in tax advantageous strategies for retirement planning and general overall wealth. Get in touch today to find out more!
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