Most helpful replyATO Certified Response
Author: AriATO(Community Support)Community Support ATO Certified Response6 Apr 2023
Hi @berca369
We've heard back from our technical team.
The core issue is whether or not you are a temporary resident. In essence you are mainly treated as if you were a non-resident for tax purposes. This means that you are taxed on Australian sourced income. Such as Australian sourced dividends.
For capital gains tax purposes, you are only taxed on taxable-australian-property. Such as sales of real property. If you earn income from services or employment this is assessable.
If you are a temporary resident for tax purposes, then the following outcomes apply:
Foreign income and foreign capital gains (your questions 1, 2, and 5)
As you are a temporary resident, you are not liable for tax on foreign sourced income and capital gains.
Australian sourced income and capital gains (your question 3)
As you are a temporary resident, you are liable for tax on Australian sourced income such as dividends from Australian shares.
Australian asset capital gains (your questions 4)
As you are a temporary resident, you are only liable for tax on capital gains that are from taxable Australian property. As shares are not taxable Australian property CGT would not apply.
Your place of residence (your question 6)
As a temporary resident, you would be taxable under CGT for a sale of a residential property. However, if you lived in the property, you could be eligible for a main residence CGT exemption if you satisfy the eligibility criteria. For more information go to Eligibility for main residence exemption (QC 69710). The main residence exemption does not apply to foreign residents.
If you're eligible for partial main residence exemption, the 50% CGT discount on capital gains is not available to you as a temporary resident. This is if you got the main residence after 8 May 2012. For more information go to Your residency status and CGT ( QC 69714).
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