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PMV 300 Sponsor self employed

2458 Views 19 Replies 5 Participants Last post by  Margo9
Greetings members!

This forum has been a valuable source of information to me so far, so a quick thanks to all mods and users.

My question regards the sponsors application section for my fiance's PMV 300 offshore application (Hong Kong for anyone interested). I have searched for posts relevant but have not found any yet.

I've been a self employed sole trader/contractor working offshore for the past 2 years. I've been a bit naughty and neglected my tax returns for this time but after learning about the government debt question i have reached out to an accountant to begin putting my tax in order to 'arrange to make payments' so i can satisfy this part (Please tell me ive done the right thing! i hope this will be enough to pass that question)

What else should i expect to be asked or have to prove in the online application regarding my employment, income or finances?
Am i right to believe there are no real financial requisites to be a sponsor for a PMV300?
i just want an idea of what will be asked of me regarding employment or income and how to put my best foot forward on the sponsors section

any information i can get will no doubt get me better prepared for when my fiance hits the submit application button.

Any answers or advice are greatly appreciated,
like most i find the whole process a bit scary and quite stressful!

Thanks in advance to any who can answer my questions
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Currently you have no debt with the Commonwealth. You may or may not after you do your tax returns, if you do enter into a payment plan.

Finances is all about how you and your fiancé deal with the money you have or in many PMV's how you plan to use the money you both have.
I can not remember the wording on the debt but from memory you answer you don't have a debt as a payment plan is then considered more a "loan" from the government - similar to student loans. Just look it up its mentioned some place (or was) and is pretty clear. Some of the other members are pretty good on government stuff including taxation.

Just curious has any taxes been taken out of your pay in other countries or Australia?

Sorry but very sure you need to list all your travels, I recall I needed to and I also had a bunch of countries. The dates I could not exactly work out I made them the 1st of the month (even this was a guess at times) and the year, I then uploaded a cover letter to the Case Officer and explained that I did not have exact recollection are evidence of the visits and the entries on the 1st of each month listed were my best guess.

I have since heard you can get your travel history from immigration, but I expect this only gives your exit and entry dates from Australia. I lived in Africa for around 8 years so that would not have helped me much. Being in aviation many of my trips were not recorded in the African countries when it was work related - you simple walk thru the crew gate and show that you have a passport and airport security card as you walk by.

If you have in total stayed in a country for more than 12 months in the last year, you need to list that and will require a police clearance from that country (pretty sure all sponsors need a PC now). At the time of our application I did not list Botswana as a country I lived in for more than 12 months in the last 10 years, I did live there for around 8 years but only 10 months of it was in the last 10 years. Probably not the right thing to do, but trying to get a police clearance from there lead to the creative way of interpretation requirement.
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When we did the application sponsors of an applicant with children require police clearances, so I was required to. But I am sure that now all sponsors need them - part of a clamp down on Domestic Violence.

If you have paid your tax, you probably wont have a debt (you might get a fine for late lodgement but they often waive that if you are proactive on fixing the error).

Working under ABN's is very hot at the moment, particularly if through Labour Hire Firms. If your using the ABN then it appears you are paid by an Australian company and paid as an Independent Contractor. If you look up the "Independent Contractor or Employee" decision tool on the ATO web site, there is a very great chance you will find you are an Employee for tax and supa purposes. The penalties for the companies for this can be pretty steep around $50k per offence. It also leads to Payroll Tax evasion. Luckily for you there is no penalty so to speak but the ATO can cancel your ABN.

The short quick fix for this is to open a company and trade under a ACN not a ABN. A bit more to it than that, but have a chat to your accountant about it.

A extract from a email I got this week.

your industry is one where labour hire providers appear to be engaging in sham contracting in order to avoid their obligations, such as their payroll tax requirements, to workers. Through its own investigations, the Government has become aware of many workplaces like yours.
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I would get the child a local passport and apply for Citizenship By Descent asap, it is not expensive and can be very fast.

I don't know on payment plans for individuals but I expect it is the same as for companies.

I often used my tax payments to grow my company (it worked out as a tax free loan) we certainly never had a 10% figure to start, They would say ok you owe $100,000 we want $20,000 a month. We would say no can not afford that we will go broke. Then it was always what can you afford and we would reply maybe $10,000 but to be safe $8,000. They would generally agree at this point and ask the date of first payment - we would always make it a date the following month around 6 weeks after the date we are currently on.

They insist you make all tax payments during this time on time and don't default.

We probably did this 7 or 8 times and never once did we get a penalty or interest on the owed amount, we did get a nasty person on a few occasions but simply had an emergency to deal with and needed to call back - you get a new person and start your negotiations again.
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If I were you I would get a independent accountant that specializes in offshore employment.

In my opinion what extra they will cost you will make up in what you will save in tax to be paid, they also will deal with your payment plan.
Kong Hong has a good per diems allowance and I guess accommodation allowance, that might save your bacon if that is where your working from.
Supa can be a bit tricky.

If a person is paid an award amount, then generally supa is paid in addition to that amount. Were the payment received is above an award then the supa can be included in that payment amount.

So your employer could have the position that your payment is inclusive of supa and as a contractor you are required & responsible to pay your own supa. (I would not like to be taking this position to the Fair Work Ombudsman as I don't think it holds water).

Generally once the bridge is on fire claims for supa are made.
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