How do I treat Capital Gains on Australian assets when living overseas as a foreign tax resident

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AriATO · Answer

Hey 1) Yes, you need to work out your capital gain or loss and declare it in the relevant Australian tax return for that financial year. 2) No you don't pay CGT in the tax return that coincides with you returning to Australia unless you actually dispose of the assets during that financial year. If not, then the CGT event happens when you do. 3) That depends. If its taxable Australian property then yes. If non-taxable Australian property then your ownership period is usually when you're an Australian tax resident. Hard to give you a straight yes/no answer because this may vary depending on facts. 4) Deemed acquisition will apply. You'll be taken to have acquired those shares for market value at the time you become a tax resident here. Check out how changing residency affects CGT (https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/how-changing-residency-affects-cgt#ato-BecominganAustralianresident:~:text=residency%20affects%20CGT-,How%20changing%20residency%20affects%20CGT,-How%20the%20assets) for further info.

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