Author: Taxduck(Taxicorn)Taxicorn 8 June 2024
"I think I also understand that if I am in Australia less than 45 days in a tax year I will not be a tax resident? "
Not quite accurate. This taken from the tax ruling (full link below)
Where your physical presence overlaps more than one income year, consider the full period of your physical presence in Australia. For example, if you arrive in Australia on 1 April you may be regarded as a resident from the day of your arrival despite being in Australia for only 3 months of an income year if you exhibit the characteristics of a person residing here over the entire period of your physical presence in Australia.
https://www.ato.gov.au/law/view/document?docid=TXR/TR20231/NAT/ATO/00001 (paragraph 27
So you will be considered a tax resident until day of departure. Eligible for 50% discount if you have owned property for 12 months and you are a tax resident on sale.
https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/cgt-discount
Tax rate will be normal marginal rates but part year tax free threshold
https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency/australian-resident-for-tax-purposes
This link explains 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
Sale date of property is date on contract of sale.
https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/cgt-events
Thanks @Taxduck, with regards to the marginal rates, I understand the change for the part year tax threshold. In terms of calculating the marginal tax rates on income for the month of July will I have the full tax brackets available to me despite not completing the full Tax Year.
Based on this page for 24-25. Tax rates – Australian resident | Australian Taxation Office (ato.gov.au) will 16cts per $ of Australian Income up to $45,000 be my correct understanding?
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