Tax issues to consider when moving back to Australia

Tax issues to consider when moving back to Australia

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.

Shane Macfarlane
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Shane Macfarlane

CEO & Founder at Expat Tax Services
Shane's an Australian Chartered Accountant and Australian expat tax specialist who's also an expat himself (based in Asia).Shane's passionate about tax and legitimate tax minimisation, particularly as it relates to Australian expats who are often subject to high rates of tax back home in Australia.Beyond tax and accounting, Shane's an entrepreneur, having devised, created and founded a successful accounting startup, Fifo Workpapers (acquired by accounting software giant, Intuit inc. in 2013)

In short Shane's a tax and software techno-geek, who recognised that Australian expats were unable to obtain the specialist advice and quality service, that they needed from their accountants. Accordingly, Shane founded Expat Tax Services to provide Australian expats with access to specialist, quality advice at fair and reasonable prices (no hourly rates, fees quoted upfront with unlimited support included) . . . receive the support and advice you need without having to take second-mortgage to pay your accountant's bill! Speak to Shane & the team today.
Shane Macfarlane
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Comments 4

    1. Post
      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

  1. 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

    1. Post
      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

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