Australia is one of many countries that has committed to new global standards on the automatic exchange of financial account information. This information is required by law to be collected by financial institutions around the world for reporting to tax authorities. Tax authorities will exchange this information to help make sure everyone pays the right amount of tax.
The Australian Government has enacted laws and entered into international agreements. This may affect you as a customer of a financial institution as Australian financial institutions must identify accounts held by customers who are foreign tax residents or entities connected to foreign tax residents.
What you need to do
It is important that you respond if your financial institution contacts you requesting information. If you don’t respond, they may have to treat you as if you are a tax resident in a country outside Australia, even if you are not.
For most of you, it means simply informing you are a tax resident of Australia.
If you have any questions, please do not hesitate to give our office a call.
Sincerely,
The Team at VJC
