Hello ATO,
I have recently learned about my tax residency status. As a New Zealand citizen resident in Australia, and satisfying all requirements, I am classified as a Temporary Resident for Tax Purposes. This was confirmed by the ATO in my earlier question.
I want to confirm my understanding of Australian personal taxes, as a Temporary Resident, in relation to
1. Capital Gains on Foreign US listed stock sales
2. Dividend income from Foreign US listed stock
3. Capital Gains on Australian ASX listed stock sales
4. Dividend income from Australian ASX listed stock
5. Franking Credits from Australian ASX listed stock dividends
I have read the following:
This means you only declare:
* income you derived in Australia
* any income you earn from employment or services performed overseas while you are a temporary resident of Australia.
Other foreign income and capital gains don't have to be declared.
Foreign and temporary residents are subject to CGT only on taxable Australian property.
Taxable Australian Property
Foreign and temporary residents are only subject to CGT if a CGT event happens to a CGT asset that is taxable Australian property. Shares in widely held, publicly listed companies aren’t generally considered to be taxable Australian property.
So, back to the original questions above, I want to confirm my understanding of the tax implications in relation to share investing, while I am resident in Australia.
1. Capital Gains on Foreign US listed stock sales
I understand from above "Other foreign income and capital gains don't have to be declared.".
This means I do not include this in my tax return. Do I understand this correctly?
2. Dividend income from Foreign US listed stock
I understand from above "Other foreign income and capital gains don't have to be declared.".
This means I do not include this in my tax return. Do I understand this correctly?
3. Capital Gains on Australian ASX listed stock sales
Unless the asset is Taxable Australian Property with the definition of:
You have an indirect interest in Australian real property if both the following are true:
* you and your associates together own 10% or more of another entity, whether Australian or foreign – this is called the 'non-portfolio interest test'
* the market value of the assets of that entity is mainly attributable to Australian real property – this is called the 'principal asset test'.
I understand from above that "Other foreign income and capital gains don't have to be declared."
In this context the Capital Gains on ASX listed stock are not reportable as Australian Income and I do not include this in my personal tax return. Do I understand this correctly?
4. Dividend income from Australian ASX listed stock
I understand from above that "income you derived in Australia" is reportable, therefore Dividends from ASX listed companies would be considered Australian Sourced Income and must be reported in my personal tax return. Do I understand this correctly?
5. Franking Credits from Australian ASX listed stock dividends
As I am Resident (although Temporary) and must declare Australian sourced dividends as Income, I continue to benefit from Franking Credits being passed to me along with the dividend payments made by companies. Do I understand this correctly?
I am looking forward to you correcting my understanding of the above.
Are you able to provide any links to the relevant legislation which can support the information available on the ATO website?
Thanks in advance,
KiwiTraveller
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