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Very interesting and topical question Chinh, and a question that can cost you over $200k in the time you are on assignment.

There are many people who have been working in the Middle east in similar arrangements for even up to 6 years without returning to Australia every year, then returned to Australia to get audited by the ATO for being a resident of Australia and not having paid taxes here.

Worse still, they tax income AND benefits, and apply penalties and interest if you have not been declaring along the way.

I would recommend getting advice from an expatriate tax specialist. Like the difference between a GP and a specialist, expect to pay top dollars, but the value you get for the risk more than outweighs anything.

Best of luck!

HI,

I am an Aussie too.

The only way for not having to pay the taxes in Australia for your overseas income is to rent out your property in Perth, so you will just pay the tax for the money that you make from the rent.
Otherwise, even if your family will come with you to Kuwait, for ATO you will be still a resident  for taxation purpose.
Besides, you and your family have to stay away from Down Under at least two years.
And I would ask the company you work for, to pay you through a Kuwaiti bank account.
I reckon that in your situation there is no way to escape from ATO, but you might have to declare only the actual amount of your salary, so all the benefits can be deducted.

Thanks all for your advices