Speak to Ethical Offshore Brokers and we will explain how to take advantage of certain Global Offshore Investment Products to reduce, or even eliminate Australian tax on your investment portfolio. All this while still having full control of your invested assets.

It is nearing the end of June, so that means Aussie tax payers are heading into a new financial year… it also means that Aussie tax payers will soon be needing to complete their annual tax return and having to declare their investment earnings.

But what about Aussie Expats…

While many an Aussie Expat may currently be enjoying an almost tax free situation with their investments, what would happen if they were to return home. Are they aware that some simple (& completely legal) planning while they are away from Australia could result in their investment portfolio maintaining its tax free status, even when they become a tax resident of Australia.

And all this while they continue to maintain control of their existing investment portfolio..!!

Read a more detailed explanation (PDF Format) into how the International / Offshore Life Assurance Investment Policies significantly benefit Australians (or any nationality) that is moving to Australia

(we would like to acknowledge Quilter International and RL360 for much of the information contained in the report).

In summary, it all comes down to the section 26AH of the Income Tax Assessment Act 1936 (ITAA 1936) and the 10 year rule.

• If you have held an eligible policy for a period of greater than 10 years, any withdrawals taken from the policy, irrespective of how much capital growth has been achieved, will NOT be assessable for Australian Tax.
• If a withdrawal is taken after 9 years but less than 10, then 1/3rd of the capital calculated growth component of that withdrawal would be assessable for Australian Tax.
• If the withdrawal was done after 8 years but before 9 years, 2/3rds of the growth component would be assessable for tax.
• If a withdrawal is done within 8 years of the policy set up, then all of the growth component of that withdrawal would be assessable.

PLEASE NOTE

• It is only the growth component of the withdrawal that is assessable and not the actual withdrawal amount.
• Read about and see examples of the calculation to determine this here (PDF Format).
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• Also please note that it would only be assessable IF you are regarded as an Australian Tax Resident at the time of the withdrawal.

At Ethical Offshore Investments, we can provide guidance on not only the correct product(s), but also the relevant timing strategy to maximise the tax effectiveness that these products provide.

If you are an Australian or someone that may be relocating to Australia in the future, we suggest that you click here (PDF Format) to get more detailed information (& case study calculations).

You should also contact Ethical Offshore Investments and we can then provide specific guidance, personalised to your individual situation so you too can take advantage from the significant tax benefits Aussie investors and tax payers that are available.

Providing wealth management services to our global clients…. while using an ethical business approach.