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Re: Capital Gain Tax - new migrants - Stocks

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Newbie

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Hi,

 

I moved to Sydney from Singapore in July 2018. I had come stocks purchsed in Singapore over the years. Some of the, I sold after I moved to Australia. My question is how will my CGT be evaluated. 

Based on https://community.ato.gov.au/t5/Working-visa/Capital-gain-tax-on-shares-for-new-migrant/m-p/16229 answers, it look like tax will be on top of the value at the time of my move to AU. I am aware that since i sold them within 1 year of moving to AU, I will have to pay tax on full profit (not just 50%)

However my tax consultant told me that the CGT will be from the date I started accumulating the stocks and will be taxed based on first bought first sold basis.

Can someone please suggest what should I do in this case?

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Most helpful response

Enthusiast

Replies 1

I would assume you became Australian resident for tax purposes when you moved to Australia in July 2018. In such case, generally overseas shares that you acquired while you were in Singapore (non tax resident of Australia) would need to be revalued to the market values at the time you arrived in Australia and those market values would be your new cost base when you dispose of those shares subsequently. The reason is because these assets are not considered as taxable Australian property. I would suggest you refer to the link below;

 

https://www.ato.gov.au/General/Capital-gains-tax/International-issues/Changing-residency/#Becomingan...

 

Hope this helps!

 

2 REPLIES 2

Most helpful response

Enthusiast

Replies 1

I would assume you became Australian resident for tax purposes when you moved to Australia in July 2018. In such case, generally overseas shares that you acquired while you were in Singapore (non tax resident of Australia) would need to be revalued to the market values at the time you arrived in Australia and those market values would be your new cost base when you dispose of those shares subsequently. The reason is because these assets are not considered as taxable Australian property. I would suggest you refer to the link below;

 

https://www.ato.gov.au/General/Capital-gains-tax/International-issues/Changing-residency/#Becomingan...

 

Hope this helps!

 

Community Support

Replies 0

Hi @iusverma

 

We appreciate the query.

 

Thanks to @Thai as well that is a good link you provided. It explains that you should establish market value on the shares cost base from the time you took up Australian Residency for tax purposes. Whatever its market value on that date was you can use for your cost base with normal rules for calculation applying thereafter.

 

Hope this helps further.

 

Cheers
MarkA