Prospective Partner visa and ATO compliance?

(Newbie)Newbie

21 May 2026

Scenario:

My partner is on a Prospective Marriage Visa (Subclass 300) and will be entering Australia around December 2026.

She currently owns an investment property in China that is rented out.

We are planning for her to come to Australia first (temporary stay context), and she may or may not live with me initially (considering options like hotel or rental during transition).

Questions:

1) At what point would she likely be considered an Australian tax resident for tax purposes? Is there any practical guidance on when “residing” begins in situations like this?

2) If the China property is sold:

- Before arrival → I assume no Australian CGT applies?

- After arrival but before clearly settling → how is this treated?

- After becoming a resident → does CGT apply, and how is the gain apportioned?

3) Given the ambiguity of the “resides test”, is it reasonable to take a conservative approach and assume tax residency may start from around arrival for planning purposes?

4) Are there any ATO rulings or guidance specifically relevant to temporary visa holders (Subclass 300) transitioning into residency?

5) Are there any practical examples or rulings (case law or ATO advice) that clarify similar scenarios?

Appreciate any insights, particularly around defensible positions and risk-based decision making.

Thanks

Synice

0 likes

38 views

6 replies

38 views

6 replies

All replies

Taxduck

(Taxicorn)Taxicorn

21 May 2026

Tricky. The visa is a temporary visa so if your prospective spouse does not move in with you then they would be considered a temporary resident. (they could also be a foreign or Australian tax resident). As a temporary resident then overseas income is not assessable. (including the sale of overseas property)

If your prospective spouse moves in with you then they will lose their temporary resident status. (unless you are a temporary resident as well). At that stage overseas income will be assessable (including the sale of property) if they are also considered an Australian tax resident. See below

How changing residency affects CGT | Australian Taxation Office

So you need to establish the date they would become an Australian resident. That is what the tests are for and this is an individual determination based on the facts of your particular situation. (no one can advise when this start date will be).

1 likes

Liked by KaraATO

Synice

(Newbie)Newbie

22 May 2026

So I shall assume on day 1, when landed, automatically considered as Tax Resident, so any assets foreign and local will subject to income tax when lodged, so the reside clause doesnt make much sense, and we are not lining this to PR - in a sense, the blanket statement would be safe to say:

If you are in Australia, regardless how long or short, any earnings on paper must be lodged, and that automatically qualifies as a tax resident for that FY.

but when you look at the vague terms set out by ATO its blurred the lines.

So for this am I correct to think:

once the visa is approved, and she comes to Australia, from that day - she must lodge a tax return for that FY, inc. foreign assets and should she sell that foreign asset in her own country, would be subjected to income tax brackets i.e. 50% CGT discount

For Example?

FY26

AUD 18,200 tax free which equates to 88394.49 RMB as of today rates (22-May-2026)

any income from rents exceeding 88394.49RMB will be subjected to each income brackets accordingly?

and if she sells the property, then a 50% CGT discount should apply and if that 30% flat rate + indexation etc,

So taxes is paid in China and Australia at the same time - with that Foreign Tax credits

Overall am I right on this path?

0 likes

Prospective Partner visa and ATO compliance?

All replies

Featured articles

When you need to register for GST

Answers to your PAYG instalment questions

Top liked users

Top contributors

Explore tax & super topicsExplore tax & super topics

About usAbout us