Income tax for money earned abroad?

Question

If I earn $10,000 in a tax free country such as the UAE and then return to Australia, do I still have $10,000 or is it taxed when I transfer it to my Australian bank account. If so how can you avoid being taxed?

Answer 1

You will still have the $10,000 - in a sense that the bank is not taking it away from you. You are meant to declare it in your Australian tax return, as the above mentioned country has no income tax.

Our tax system is self-assessed - until you are audited - then you have to prove yourself.

So - to avoid it - you can just not declare it, and (maybe) wait until you get audited whereby you will have to pay the tax plus Interest and penalty.

Or alternatively to avoid it - generally if you work in a country where it has an income tax system, the ATO will not double tax you.