Hi all, and thanks for your contribution
A quick update on my research, and any feedback will be helpful
I received advice from a tax agent, they describe themselves as Expat tax specialists, helping Australians living and working overseas manage complex cross-border tax obligations. They assist with determining ATO tax residency status, correctly applying Double Taxation Agreements (DTAs), and navigating Capital Gains Tax (CGT) rules regarding foreign assets or Australian assets
Their reply was the following
We understand your background as follows:
The property is owned 50:50 with your sister
Property was acquired in 2020
You started a job in NZ in 2023
You own another two investment properties situated in Australia, both of which have been rented out
Your main residence property in Australia has not been rented out, nor sold
You are with an Australian industry super fund, and you still maintain the account; and
The ‘gifting to parents’ idea is just a plan at this stage, and hasn’t been actioned.
All the above-mentioned circumstances are correct and true. This is my reply
As discussed briefly in the call, we need to first understand your tax residency, as moving overseas for work doesn’t necessarily mean you become a non-resident for Australian tax purposes. Australian residency law is complex and detailed oriented; there are [Removed by moderator] tests, and you must fail all of them to become a tax non-resident.
In the case that you remain a tax resident of Australia while also being treated as a tax resident of another country, and a double tax agreement is in place between the two countries, it is necessary to apply the hierarchical tie‑breaker tests to determine your primary tax residency. Under the Australia–New Zealand Double Tax Agreement (DTA), an individual who is a tax resident of both countries is deemed to be a resident of only one country for tax purposes. Does
anyone agree that this advice is correct? However, this is just advice rather than a guaranteed outcome
· Would it make any difference if we sold the property to the parents rather than gift it?
Thanks all in advance
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