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TaxNovice12(Initiate)Initiate
13 Dec 2022

Hi there,


I am currently an Australian resident but I plan to move to another country and will cease to be an Australian resident for tax purposes. I have questions about Australian government bonds (AGBs).


1.    For a foreign resident, is the coupon interest from AGBs subject to the 10% withholding tax?


2.   Moving forward to the time when I sell the AGBs before maturity (or receive the face value of the AGBs at the maturity date). If I am still a foreign resident at that time, do I need to pay tax on this capital gain to ATO? If yes, do I need to file the tax return to ATO in that year, or will there be another withholding tax instead?


Thank you so much for your kind help and your reply!

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3,671 views
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Most helpful response

Most helpful reply

CaroATO(Community Support)Community Support
15 Dec 2022

Hi @TaxNovice12,


If you've provided your tax file number, (TFN) or Australian business number, (ABN) ........ good news!


These types of bonds are exempt from non-resident interest withholding tax.


If you're an investor capital gains tax, (CGT) doesn't apply.


When a non-resident trader, a person in business, sells their bonds they can choose to disregard all capital gains and losses.


You'll need to think about what other reasons you might need to lodge a tax return as a non-resident.


Have a look at the information on our website where it talks about how changing residency affects CGT and if you need to lodge a tax return.


The Australian Government bonds website has some good information about tax consideration of AGBs.

All replies

Most helpful reply

CaroATO(Community Support)Community Support
15 Dec 2022

Hi @TaxNovice12,


If you've provided your tax file number, (TFN) or Australian business number, (ABN) ........ good news!


These types of bonds are exempt from non-resident interest withholding tax.


If you're an investor capital gains tax, (CGT) doesn't apply.


When a non-resident trader, a person in business, sells their bonds they can choose to disregard all capital gains and losses.


You'll need to think about what other reasons you might need to lodge a tax return as a non-resident.


Have a look at the information on our website where it talks about how changing residency affects CGT and if you need to lodge a tax return.


The Australian Government bonds website has some good information about tax consideration of AGBs.

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Taxes on Australian Government Bonds for Foreign Residents | ATO Community