So as of October 8th I will no longer be a Canadian Resident.
Seeing as I just spent two and a half hours on the phone with a dozen different people, talked to one of my friends’ friends who went to Australia, and cried on the phone with this poor guy at Revenue Canada after not getting any real answers from anyone, I finally figured everything out.
Basically, since I have nothing to tie me to Canada, ie no house, marriage, children, loans, investments etc, when I leave I will no longer be tax-paying resident of Canada.
I still have my MSP (British Columbia medical) which I need for my travel insurance. Well… I don’t need it, but my emergency medical policy drops from $10 million down to $25,000. I think that’s worth the little extra cost each month.
So, why was all of this important? And why the hell don’t they teach any of this in school?!
Because, if I were to close my MSP (which I was thinking of doing) I would no longer be covered by a government body. Essentially, Canada would not take care of me in case of an emergency. I would have to buy medical in Australia, and the Australian government would take care of me instead. Also, when I come back to Canada, I would not be covered for 3 months after I land. I would have to buy travel insurance in Australia to cover me during those three months in case anything happens, since no Canadian insurance will cover you without MSP. And as stated above, it lowers my emergency medical on my travel insurance. None of that bothered me, too much. What did bother me, was if I was still a tax-paying Canadian resident while in Australia, like if I had even my TFSA open or owned a house, I would have to pay taxes on all of the money I make in Australia (potentially thousands of dollars.)
Not cool. Not cheap.
I also just have to somehow remember to do my income taxes while I’m gone, stating that I am in fact, not a Canadian resident.
It’s amazing how difficult it is to leave the country, I can hardly imagine how hard it is to enter it!
It also amazes me that no one teaches anyone about any of this. This is actually pretty important stuff!