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Tazzle(Enthusiast)Enthusiast
26 Oct 2023

If, after leaving Australia, tax residency is not updated to 'non-resident' with the Australian institutions that hold a person's ETFs or managed funds, and later data from the institutions is pre-filled on a tax return showing capital gains and dividends, should the pre-filled data just be left as is for the ATO to tax correctly? Will they apply any applicable tax treaty rates? And does it make a difference if some shares are Australian and some are foreign? Also, where can I find the tax rates for non-residents on capital gains and dividends from managed funds/ETFs?

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330 views
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CaroATO(Community Support)Community Support
30 Oct 2023

Hi @Tazzie,


Keep in mind, when you sign off on your tax return, you're telling us it's the most accurate and correct to the best of your knowledge. If your residency status has changed, you'll need to let the Australian institutions that hold the ETFs or managed funds know. If it's appropriate they'll update the pre-filled information. This could help reduce the amount of tax you pay.


A similar question has been asked by another community member, check out the answers.

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Most helpful reply

CaroATO(Community Support)Community Support
30 Oct 2023

Hi @Tazzie,


Keep in mind, when you sign off on your tax return, you're telling us it's the most accurate and correct to the best of your knowledge. If your residency status has changed, you'll need to let the Australian institutions that hold the ETFs or managed funds know. If it's appropriate they'll update the pre-filled information. This could help reduce the amount of tax you pay.


A similar question has been asked by another community member, check out the answers.

Liked by Tazzle
Tazzle(Enthusiast)Enthusiast
31 Oct 2023

The non-resident status has been disclosed in the tax returns and so has the new country of residence. Most of the funds invest in non-Australian companies. Would you know if the institutions that hold the ETFs or managed funds would be able to change the pre-filled data AFTER a tax return has already been submitted, if necessary? I assume not, but confirmation would be great. There are two tax returns, one recently submitted (late) and another due to be submitted.

Tazzle(Enthusiast)Enthusiast
31 Oct 2023

The new country of residence, Canada, with whom Australia has a tax treaty. So this means distributions should be taxed at 15%, or is this only if it is deducted by the fund? I've just read that this makes a difference: that the distributions are treated as Australian-sourced income and taxed at the foreign resident rate of 32.5% if reported on a tax return instead of taxed directly by the fund. Is this true? 


If a tax year has already passed (the late submission) am I stuck with having to pay the 32.5% tax rate or is my fund still able to make adjustments?


Also, my guess is that there is no CGT to consider? Shares in the funds were mostly bought while a temporary resident of Australia.


Thanks @CaroATO.

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