My husband has been offered a contract in Dubai. We are Aus. residents living in Qld. He will work for 6 wks and receive a return ticket back to Aus for 2 wks, then back for 6wks, home again for 2 wks..you get the picture. He will be paid US$8-9000 per wk for this work so very well paid.
We are concerned about the tax implications for this work. Husband will be considered a resident of Aus so will have to pay the full tax rate of 48.5%. His earnings will be approx. AU$470,000 per annum so would loose almost half in tax!!!
My questions is this, would it be possible for myself and our 2 kids to move to Dubai so husband would become a non-resident of Aus therefore his earnings would be tax exempt in Australia if we were to stay for 2 years min.? Is it possible for a wife and 2 children to live separate to the husband in Dubai? Husband has accommodation included for himself with the contract but not his family. Our 2 children are high school age.
Basically, we dont want to loose so much in tax here in Aus, it seems ludicrous to pay over AU$200,000 in tax each year!!
Are there any ways we can reduce our tax bill in Aust when husbands income is derived from Dubai, a tax free country? If you have any suggestions or help to offer please do. Obviously we will seek advice from Tax Accountants but in the meantime wondered if anyone on here has first hand experience with this.
Im sure others earning around AU $400-500K per annum would not happily give approx. $200K to the Aus. Govt each year in taxes!!
Thanks in advance for any suggestions/help