Australia Extends Validity Period of Retirement Visas

In a welcome move, the Australian Government has said it will legislate to extend the validity period of subclass 410 Retirement visas to 10 years, and remove the working restriction on these visas.

Subclass 410 Retirement visas ceased to be available to new applicants at the end of June 2005, but there are nevertheless some 8,700 410 visaholders in Australia at the moment.

The 410 visa is a long term temporary residency visa, with an initial validity period of 4 years. Initially renewals of this visa were required every 2 years, and there was a no work condition attaching.

Work rights were relaxed in 2003, and relaxations to the health requirements upon renewal of 410 visas were announced later that year.

In 2005 the rollover period for 410 visas was extended from 2 years to 4 years.

Successive Immigration Ministers appear to be sympathetic to the position in which Retirement visaholders find themselves. Many 410 visaholders are now long standing members of Australian communities, and granting permanent residency is a natural next step – the present Minister appears willing to listen to representatives of the 410 cohort, and in extending the renewal period to 10 years is (we would submit) providing quasi-permanent residency to affected individuals.

Full access to Medicare appears to be the main issue with this visa category, together with an ongoing requirement to maintain private health insurance.Indeed, with temporary visaholders being able to structure their personal tax affairs such that overseas source income (including UK source pensions) are not subject to tax in Australia, some would contend that 410 visaholders are in a good place visa and tax wise.If you are a subclass 410 visaholder and would like to discuss your personal tax and financial position please contact us at our Perth or Geelong office. Go Matilda Accounting and Tax is one of the few firms of advisors that have consultants with knowledge across the UK and Australian jurisdictions, and are therefore ideally placed to assist with the preparation and lodgment of UK and Australian Tax Returns, and to provide strategic advice on personal tax planning. We also recommend that Retirement visaholders visit the internet discussion group that lobbies for the interests of individuals holding subclass 410 visas – British Expat Retirees In Australia, or BERIA: see the weblink below.

http://groups.yahoo.com/group/BERIA/  Source : www.gomatilda.com

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Australia prepares for Budget 09

TONIGHT’S Federal Budget will be about three things – jobs, nation building and a path back to surplus.

That was the message from Treasurer Wayne Swan this morning as he again repeated the Government’s mantra that there would be “difficult decisions” and “no easy answers”.

Just hours from delivering a in Budget ravaged by a $200 billion writedown revenue, Mr Swan said he was working in the “most difficult set of circumstances in 75 years”.

But he dodged questions about the likely impact on Labor in the polls, saying: “What we have to do is the right thing in the nation’s long-term economic interests”.

Wealthy retirees emerged as the latest group to pay the price for that stance today.

The Daily Telegraph reported they could have their pensions cut to help fund a $30-a week increase for almost one million single age pensioners.

The Government is expected to tighten the taper rate on the age pension, a method by which it claws back the welfare payment from retirees with an independent income.

It is just one of a number of cutbacks the Government is expected to outline as it tries to rein in an expected almost $60 billion Budget deficit.

The 30 per cent tax rebate for private health insurance coverage will be means tested, payouts for obstetric and IVF services under the Medicare Safety Net will be cut back and the increase in the first-home owners grant will be wound back.

Wealthy Australians will have their tax break on superannuation contributions cut in half and government superannuation co-contributions for low income earners will be slashed from $1500 to $1000 a year.

The “sin taxes” on alcohol and cigarettes could be increased.

But the Budget will announce an 18-week paid maternity leave scheme.

And it is expected to include a big-spending jobs package to combat an expected increase in unemployment to 8.5 per cent as a result of the global financial crisis.

The Opposition said the Budget cutbacks were made necessary by the Government’s irresponsible big-spending stimulus packages in response to the global financial crisis.

The $30-a-week rise in the pension will go only to single age pensioners and will see the weekly pension rate rise from $284.90 to $315 a week.

It will answer criticism that the payment left in poverty those who relied solely on the pension.

The rise is also expected to be extended to single veterans and disability pensioners but will not go to single mothers.

The pension rise will cost more than $3 billion, and to help pay for it, the Government is expected to tighten means testing of pensions.

Currently, single pensioners can earn up to $41,000 and still receive a small pension payment.

They also qualify for a range of concessions on medicines, council rates, electricity bills and telephone allowances worth up to $10,000 a year.

Couples can earn up to $68,000 and still get access to these valuable concessions.

http://www.news.com.au

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