In a comment article published in today’s edition of The Australian, tax partner Jonathan Ortner observes that Australia could benefit from the cancellation of the UK’s non-domicile regime if we play our cards right.
The regime allows a UK resident, whose domicile for tax purposes is outside the UK, to only pay UK tax on the money they earn in the UK and a small fee for the privilege of being a member of this select group. They are not taxed on money made elsewhere in the world, unless they remit that money back into a UK bank account.
“It’s been a political hot potato for years,” Jonathan explains, “but when Akshata Murty, the multi-millionaire wife of former Prime Minister Rishi Sunak, was revealed to be registered for non-dom tax status in 2022, the writing was on the wall.
“Australia already has a tax regime that mimics the UK’s non-dom benefits. The missing piece of the puzzle right now for nom-doms is the availability of an appropriate visa to reside in Australia. While most high-net-worth non-doms would previously have considered applying for temporary residency on the Significant Investor Visa (SIV), that avenue is now closed following the government’s decision to shut it down earlier this year.”
As part of this year’s federal budget, Jonathan writes, the government announced the introduction of a new NIV and with specific requirements yet to be unveiled, the rumour mill is in overdrive ahead of the government’s scheduled launch of the NIV before the end of this calendar year. “The question that’s top of mind for everyone is whether the NIV will be offered as a temporary visa, thereby providing the kind of tax incentives that would attract high-net-worth nom-doms.
“Attracting smart, wealthy, well connected people to Australia should be viewed as a positive, and we should be offering a migration framework that allows them to test the waters first.”
To read the full article, click here.
Doing Business or Investing in Australia: A Tax Guide
view guide
