ive recently moved to the uk but still have an investment property in australia. i believe i will now be considered a non-resident of australia for tax purposes. does anyone know what the tax implications are for this?
i am assuming that i wont be able to negative gear my property anymore, but my real concern is whether i will need to pay tax on my rental income or whether i can offset the rental income with my expenses even thoug im no longer a resident. help
Hi Russell
I believe the situation is the same as in if you were in Oz. The only difference is that as a non-resident (and again I think you only get this status if your period OS in deemed long term ie more than 2 years), then you pay tax on all of your Oz earnings, ie there are no tax breaks taken into account. However you can still claim all your expenses as if you were in Oz. If you have a loss this is carried forward until you return to Oz
Cool this helps my forward thinking too Daven. I have relos in the UK and am looking to invest there. Can get an expat tax break there as well so always happy to see what others have knowlege on first. An informed decision is better than trying to stab in the dark.
Russelld, could you let us know how you go in the UK re property please.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Hi Russell
We are currently living in the UK also and have been advised by our accountants over here that it is extremely important to make sure that you get registered as a non-resident (tax-wise) of Aus while you are away. My understanding of this is so that you can use the depreciation and “losses” of your IP’s against your taxable income in the year that you arrive home and start to work in Aus again. I think you actually have to register as a non- resident as it doesn’t actually happen automatically.
Sorry about the vagueness, let me know if I can help anymore! I will investigate tonight (I have explanation of this) and will try and post again soon.
Jet [hair2]
I think julia http://www.bantacs.com.au deals with os investors and this sort of stuff on her website.
A quick point on returning to OZ – a receptionist of my doctor returned with her spouse in January (couple of years ago) after working os for 4 years or so.
She encouraged hubby to get a job, and when it came to doing his income tax return, they counted all his uk earnt income for the financial year – and TRIPLED the $$ as that was the exchange rate at the time. No matter that cost of living meant that $40K was equal to UK40K, they got hit with a massive tax bill. Something to research when you do come back home…..
Cheers
MelMelbear,
you are only taxed on earnings derived from Australia…. Certainly it seems something went wrong with you friends case….
Did the Hubby change his status when overseas ??
I’ve been overseas for 16 years now, and, am not taxed on income here… only income on my IP’s / companies…..
Cheers
Scott
Scott, hubby is a Scotsman – she met him over there, and brought him back [
], so it was his first ever Aust tax return…Cheers
MelMel,
VERY strange then……
Did they appeal it ???
Nope! I might suggest to them that they find a good accountant, and do that – it cost them quite a packet – plus the $100K it cost to bring his kids to Australia with them!!!!
Cheers
MelThanks for the advice everyone. I’m planning on buying a place here in the UK which i believe will further affirm my status as a non-resident of OZ. I will check with my accountant when i do my oz tax return next month to ensure i am registered as a non-resident.
I have some extra cash in oz that i was planning in dumping into my oz investment property mortgage to reduce the interest, however i now think it would be better to pay the property off slowly. Its currently approximately zero geared so i shouldnt pay much tax on it. If i pay off some of the loan, the mortgage will be positive geared and i believe i will pay 30% tax on any income i make after expenses. Any thoughts?
DD – you mentioned that you qualify for an ex-pat tax break, what is this?
Melbear – Where on the bantacs site is this covered? I couldnt find anything.
regards
Russ
Russell, not sure where it is covered on the site – but Julia used to post here a bit. Maybe contact them and ask the question? Julia seems very helpful….
Cheers
Mel
], so it was his first ever Aust tax return…You must be logged in to reply to this topic. If you don't have an account, you can register here.
