The short answer to this question is yes, and if your company satisfies the requriements. Section 128AE(2) of the the Income tax Assessment Act states who are eligible to receive Offshore Banking unit Status. "28AE(2) [Declaration of person as offshore banking unit] The Treasurer may, by notice published in the Gazette, declare a person being: (a) a body corporate that is an ADI (authorised deposit-taking institution) for the purposes of the Banking Act 1959; or (b) a public authority constituted by a law of a State, being a public authority that carries on the business of State banking; or (ba) a company in which all of the equity interests are beneficially owned by an offshore banking unit (other than one to which paragraph (c) applies); or (c) a person whom the Treasurer is satisfied is appropriately authorised to carry on business as a dealer in foreign exchange; or (d) a life insurance company registered under the Life Insurance Act 1995; or (e) a company incorporated under the Corporations Act 2001 that provides funds management services on a commercial basis (other than solely to related persons): (i) that is, under the Financial Sector (Collection of Data) Act 2001 a registered entity included in the category for money market corporations; or (ii) all of the shares which are beneficially owned by a company covered by subparagraph (i); or (iii) a financial services licensee (as defined by section 761A of the Corporations Act 2001) whose licence covers dealing in securities (as defined by subsection 92(3) of the Corporations Act 2001), providing financial advice in relation to such securities or operating a managed investment scheme (as defined by section 9 of the Corporations Act 2001); or (f) a company that the Treasurer determines, in writing, to be an OBU under subsection (2AA); to be an offshore banking unit for the purposes of this Division. " For non institutions, the best way to qualify is to become a financial services licensee. This means that after your satisfy the requirements of the Australian Securities and Investment Commission, then apply by writing to the Treasurer stating that your company qualifies under Section 128AE(2)(e)iii of the Tax Act. The Treasurer will then by gazette state that your company is a OBU for Income Tax Purposes.
While this is true, you'll still be subject to nominal tax rates on any income repartiated back into the country. The secect is keeping your money out for as long as possible. Runningbear
There is a more radical approach to avoiding tax altogether - If you spend more than 6 months of the year outside of Australia (the 183 day test), you are not subject to any Australian income taxes if you show that: "In order to show that a new domicile of choice in a country outside Australia has been adopted, the person must be able to prove an intention to make his or her home indefinitely in that country e.g., through having obtained a migration visa. A working visa, even for a substantial period of time such as 2 years, would not be sufficient evidence of an intention to acquire a new domicile of choice." "As a broad rule of thumb, a period of about 2 years or more.." Also, being a tourist is not good enough: " If, however, an individual with a usual place of abode in Australia has no fixed or habitual place of abode overseas but moves from one country to another or moves constantly within the same country ( for example, from town to town or even from suburb to suburb) any association with a particular place overseas would be purely temporary or transitory and he or she would not be considered to have adopted an alternative domicile of choice or a permanent place of abode outside Australia. In such case, if the person could not be said to have acquired a domicile of choice outside Australia, the taxpayer would be considered to be a resident of Australia under subparagraph (a)(i) of the definition of "resident". " You could pick a tax haven that suits your needs, spend the required amount of time in that place to satisfy residency there, spend the rest of the year travelling and/or spend up to 182 days in Australia in a financial year and still pay zero income taxes. Need to give up your US citizenship though. http://law.ato.gov.au/atolaw/view.htm?docid=ITR/IT2650/NAT/ATO/00001