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_chooknet(Initiate)Initiate
7 Apr 2021

Hi,

I'm an Australian citizen but moved overseas a year ago and now am a foreign resident for tax purposes. I have a couple of ETFs which I have purchased both before and after moving overseas and I am trying to understand the tax on them.

I have just gone into the management portal for the ETFs and marked myself as foreign, previously they thought I was still an Australian tax resident. I read somewhere that foreign residents will not get taxed on dividends on Australian shares (but also don't get the franking benefits).

Under the "Managed fund distributions" section of my tax return, I can see that there's quite a bit of "Credit/Tax withheld". Is it possible to get this back? I've already submitted and paid for the tax return this applies to.

6,171 views
8 replies
6,171 views
8 replies

Most helpful response

Most helpful reply

_JoshH(Community Support)Community Support
12 Apr 2021

Hi @chooknet,

If you've made a mistake on an income tax return you've already lodged, you can request an amendment to your income tax assessment. (If you think we've made a mistake processing your return, you should phone us to see if we can sort it out without the need for an amendment.) See Correct (amend) an income tax return.

For further information on dividends and managed funds please refer to Investment income and royalties paid to foreign residents and Interest, dividends, royalties and MIT payments.

All replies

_JoshH(Community Support)Community Support
9 Apr 2021

Hi @chooknet,

This is a good question. We're going to look into it a little further with the appropriate team to find out for you. I'm curious too!

Most helpful reply

_JoshH(Community Support)Community Support
12 Apr 2021

Hi @chooknet,

If you've made a mistake on an income tax return you've already lodged, you can request an amendment to your income tax assessment. (If you think we've made a mistake processing your return, you should phone us to see if we can sort it out without the need for an amendment.) See Correct (amend) an income tax return.

For further information on dividends and managed funds please refer to Investment income and royalties paid to foreign residents and Interest, dividends, royalties and MIT payments.

AriATO(Community Support)Community Support
28 Apr 2021

Hi @chooknet

Unfranked dividends are taxed unless declared as conduit foreign income. Frank dividends are not taxed.

The tax rate is 30% but reduced to 15% if there is a tax treaty between Australia and your country of residence.

See another related link on our website Dividends paid or credited to non-residents.

Ari

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Taxation on managed fund distributions as a foreign resident | ATO Community