Hi, I was a working holiday maker between 2022 and 2023. During this period, I bought American shares and Australian shares on the Commonwealth Bank software. Finally got a profit of eleven thousand dollars, I declared this income to ato and paid tax at 32.5%. But recently I have seen many cases similar to mine on this website. The final reply from the official Ato staff was that temporary residents do not need to pay tax on share income. I called ato, and a representative said that I am an Australian resident for tax purpose, so I must pay share tax. However, there are exemptions for temporary resident (one can be temporary resident and Australia tax resident at the same time), whose most foreign incomes are fully emempt ( Subdivision 768-R).
Please see link below:
Therefore, one can be treated as a temporary resident for income tax purposes if you are an Australian resident for tax purposes and you also hold a temporary migration visa.
You don't have to pay tax on most of your foreign income if you:
- are an individual who is an Australian resident for tax purposes, and
- satisfy the requirements of being a temporary resident.
To be a temporary resident, one must
- hold a temporary visa granted under the Migration Act 1958
- are not an Australian resident within the meaning of the Social Security Act 1991
- do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991
The reference is at the link below:
Therefore, one can be a temporary resident and Australian tax resident at the same time, and, if this is the case, only a CGT event that happens to a CGT asset that is taxable Australian property is subject to Australian CGT. Since Us shares are definitely not taxable Australian property and I am a temporary resident, I am fully exempt from capital gain for my US share trading, even if I am a Australian tax resident at the same time. So do my dividends from my US shares (see link below):
https://www.ato.gov.au/Forms/You-and-your-shares-2020/?page=12
Please read Subdivision 768-R and the links in this question before rushing to answer. Many tax advisers from ATO and firms do not understand that one can be a temporary resident and Australian tax resident at the same time, but this situation exists and is clearly stated on ATO's website and Subdivision 768-R. Thanks!
How do I get my refund back, I have deleted my capital gain tax amount. I have changed the amount to 0 and resubmitted.
574 views
1 replies