Moving back home after working overseas for a long time can be a hectic and exciting time for many former residents of Australia. However, there’s some important tax issues to consider when moving back to Australia, issues that you should perhaps consider before getting tied up in the various other aspects of the move. In this blog post we’ll go over just a few of the tax issues you need to consider:
Shares
Any shares or investments you’ve purchased whilst abroad, even those listed on the Australian Stock Exchange (ASX) in Australia, will become taxable upon you returning home. However, any financial gain you’ve acquired before the point at which you return to your homeland will generally be completely tax-free. To avoid issues later on, it’s a good idea to declare any dividends upon returning to Australia, and that you understand any profits made above the market value (as at the date of your return) will be taxable.
Cash
If you’ve been working in a job where you’re paid cash in hand, this is pretty handy, as all cash earnings are tax-free for returning Australian residents. However, it is important to state any interest earned on your cash savings, and any gains that might be made through the changing of currency.
Property in Australia
Many expats choose to rent out a property they once lived in upon leaving the country. Upon returning, the good news is that any tax losses which you suffered whilst out of the country will now be returned to you, and will offset your Australian income. Also, if you then choose to move back into your old property, it will be pro-rata tax-free in regards to capital gains tax.
Property elsewhere
If you’ve invested in property overseas, this property will need to be valued at the point you return to Australia, and this price will then become a guide for the tax you’re due to pay on the property. If you’re renting out the property now you’ve left the country, the rent residents are paying will also be fully taxable. However, if you lived in the home yourself, then there’s a chance it will remain a tax-free investment for up to 6 years, or alternatively until you’ve bought a new property in Australia.
Whenever you decide to make the move back to Australia after living abroad, get in contact with the team at Expat Tax Services today to ensure that any tax issues are ironed out.
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Comments 4
Hi there I am living in canadabut am moving back to Australia in December to look after my very fuck parents with regards to taxes where do I even start.
Thanks julie
Author
Hi Julie,
Thanks for visiting our website and thanks for your message.
When moving back to Australia from overseas, there’s definitely a lot of issues to consider, but exactly what, really depends upon your circumstances.
As far as the best place to start, usually we’d recommend booking in for a “Returning Home” tax consultation as that allows us to learn about your circumstances, and then lay out the various tax and other issues that you’ll need to consider, long before you actually make the move back to Australia. We’ll also give you plenty of tips and practical advice, not only in relation to tax but in relation to the various other aspects of moving back to Australia.
IF you are interested in booking that appointment, please take a look at our “book an appointment” page where you can book a time that best suits you.
Thanks again for your message Julie and best of luck with your move back to Australia – we hope it goes well and we hope that we can assist you with some advice to make the transition as smooth as possible for you.
Regards
Shane
Australian expat returning to Australia ASAP
Author
Hi Natalie – thanks for your message. Hopefully moving back home represents exciting times for you?
No doubt you have a bunch of questions about doing so, and if that’s the case feel free to get in touch and book some time in with me via our book an appointment page as I’d be more than happy to take you through all the issues.
If we don’t hear from you in the meantime, best of luck with your return and safe travels.
Cheers
Shane