Hi all, This FY I am residing overseas more than 6 months, hence I will be non residence for tax purposes in Australia. In that case, all profits from my Australian share trading won’t be a subject to CGT? I do own properties with rental income in Australia though. Please help me confirm. Thanks in advance
generally trading results in income tax not CGT. Are they buy and hold shares, were they held before you became a non-resident. Are you in fact going to be a non-resident for tax purposes?
Yes in fact I have been non residence since FY 20. And the shares I bought in March this year and 20-30% were sold in May but mostly sold in the last 2 months. My rental income, positively geared, were taxed 32.5% for FY20 but I didn’t declare my share trading profits from May. Should I?
if you bought the shares while a non-resident they would generally be able to be sold CGT free from an Australian tax perspective. Hopefully you are in a country that doesn't tax capital gains.
Is physical absence from Australia for 183 days or more enough to be deemed non resident for tax purposes?
There appear to be a number of criteria to determine non resident for tax purposes. Be careful to take the appropriate action. Work out your tax residency Many years ago, I went overseas for 2.5 years. When I submitted my first tax return when I came back, I had to justify why I claimed non residency. Because I bought a property overseas and did not own a property in Australia, I was allowed non residency. I don't know though if the same applies now. It would be well worth while getting professional advice specific to your circumstances.
Interesting concept. Let’s say I’m in for a $3m share sale, and I realise New Zealand doesn’t apply CGT unless your a trader, could you in theory move back to New Zealand and end up selling at a later date to save CGT?
