Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
MarkBRAZ(Newbie)Newbie
28 Feb 2024

I'm single, no dependents, no family ties in Australia. I'm a Brazilian citizen by birth and became an Australian citizen in 2021. I have been living in Australia since 2013. Before 2013 I always lived in Brazil.


I own an apartment in Australia purchased in 2019. This is my main residence. Other than superannuation I have no other assets or investments in Australia. All I have is the apartment and superannuation.


I intend to relocate to Brazil in the near future. I own property in Brazil (purchased before I came to Australia) which will become my main residence.


I cannot tell for sure whether I will return to Australia, but it certainly will not happen in the next 10 years.


I believe in that case I will become a foreign resident for tax purposes. I intend to rent the apartment I currently live in. I am aware that as a foreign resident, I must declare this rental income in Australia and will be subject to 32.5% tax with no exemption threshold.


Given the scenario above, I have the following questions:

  1. From the moment I leave Australia with no intention to return in the next 10 years, do I become a foreign resident for tax purposes? If yes:
    1. Am I exempt from the Medicare levy and surcharge?
    2. Do I need to declare any income earned in Brazil from employment, investments, selling of assets such as property etc.?
    3. What are the effects (if any) of becoming a foreign resident on my superannuation?

Thank you.

287 views
3 replies
287 views
3 replies

Most helpful response

Most helpful reply

Ken_Oath(Master)Master
29 Feb 2024

1. From the moment I leave Australia with no intention to return in the next 10 years, do I become a foreign resident for tax purposes?


Most probably yes.


a. Am I exempt from the Medicare levy and surcharge?


Yes, whilst you're a tax non-resident.


b. Do I need to declare any income earned in Brazil from employment, investments, selling of assets such as property etc.?


Not whilst you're a non resident.


c. What are the effects (if any) of becoming a foreign resident on my superannuation?


Probably none.


There's also other important issues.

When you became a tax resident of Australia in 2013, it appears you owned some foreign asset/s at that time.

So for CGT purposes, you have a deemed acquisition of all your foreign assets at market value (converted to AUD$) at that time.

When you become a tax non-resident in the near future, you'll have a deemed disposal of your foreign assets, at market value (converted to AUD$) at this later date.

If the value in AUD$ increased during those years, you'll likely have a CGT liability, without releasing any actual cash.

We call this a tax-trap. Good luck with that.

You really should have a meaningful discussion with an experienced accountant.

Ask your friends or colleagues to recommended a good Chartered Accountant, CPA, or Chartered Tax Adviser.

S/he can describe and discuss the many relevant taxing issues, and help you conclude good outcome/s.

Don't forget that any "free advice" you receive in this forum, is worth what you paid for it, ie nil (GST included).


All replies

Most helpful reply

Ken_Oath(Master)Master
29 Feb 2024

1. From the moment I leave Australia with no intention to return in the next 10 years, do I become a foreign resident for tax purposes?


Most probably yes.


a. Am I exempt from the Medicare levy and surcharge?


Yes, whilst you're a tax non-resident.


b. Do I need to declare any income earned in Brazil from employment, investments, selling of assets such as property etc.?


Not whilst you're a non resident.


c. What are the effects (if any) of becoming a foreign resident on my superannuation?


Probably none.


There's also other important issues.

When you became a tax resident of Australia in 2013, it appears you owned some foreign asset/s at that time.

So for CGT purposes, you have a deemed acquisition of all your foreign assets at market value (converted to AUD$) at that time.

When you become a tax non-resident in the near future, you'll have a deemed disposal of your foreign assets, at market value (converted to AUD$) at this later date.

If the value in AUD$ increased during those years, you'll likely have a CGT liability, without releasing any actual cash.

We call this a tax-trap. Good luck with that.

You really should have a meaningful discussion with an experienced accountant.

Ask your friends or colleagues to recommended a good Chartered Accountant, CPA, or Chartered Tax Adviser.

S/he can describe and discuss the many relevant taxing issues, and help you conclude good outcome/s.

Don't forget that any "free advice" you receive in this forum, is worth what you paid for it, ie nil (GST included).


Liked by Ken_Oath

Featured articles

Renting out all or part of your home? What to include in your tax return

21 May 2026 · 4 min read time

How to work out your tax residency

15 Apr 2026 · 8 min read time

Top liked users

  1. Taxduck

    (Taxicorn)

    1324 likes

  2. Bruce4Tax

    (Taxicorn)

    969 likes

  3. YellowPotato

    (Taxicorn)

    358 likes

  4. Ken_Oath

    (Master)

    199 likes

  5. knaresbro

    (Devotee)

    141 likes

Top contributors

  1. Taxduck

    (Taxicorn)

    2894contributions

  2. Bruce4Tax

    (Taxicorn)

    2835contributions

  3. YellowPotato

    (Taxicorn)

    941contributions

  4. knaresbro

    (Devotee)

    291contributions

  5. TobyJDodd

    (Devotee)

    176contributions

Loading
Relocating overseas and renting main place of residence in Australia | ATO Community