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Australian resident working in Canada

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Newbie

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I’m moving to Canada to work as an Australian resident. I own two investment properties in Australia. Can I still claim rental from the properties in Australia while working overseas when I loadge my tax return?

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Hi @Nasht88

 

Welcome to our Community!

 

If you have rental properties in Australia, you must include the full amount of rent and any other rental-related income you receive in your tax return. You can find information about rental-related income on our website.

 

You can claim a deduction for your related expenses for the period your property is rented or is available for rent, such as management and maintenance costs, including interest on loans and borrowing expenses, depreciation and capital works spending which can be deducted over a number of years.

 

Check out our series of rental property videos for more information. 

 

Thanks, JodieH. 

 

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Best answer

ATO Certified

Community Support

Replies 2

Hi @Nasht88

 

Welcome to our Community!

 

If you have rental properties in Australia, you must include the full amount of rent and any other rental-related income you receive in your tax return. You can find information about rental-related income on our website.

 

You can claim a deduction for your related expenses for the period your property is rented or is available for rent, such as management and maintenance costs, including interest on loans and borrowing expenses, depreciation and capital works spending which can be deducted over a number of years.

 

Check out our series of rental property videos for more information. 

 

Thanks, JodieH. 

 

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Newbie

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Thank you.

So when i earn a full year wage in Canada, can I claim rental losses etc from Australia against my Canadian wages income? This is the part I find confusing.
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Devotee

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Hi @Nasht88,

 

Thanks for following up. There's a few things you'll need to consider in your income tax return:

  • Will you be a resident of Australia for income tax purposes? You can be an Australian resident for tax purposes without living in Australia, or not a resident but an Australian citizen with Australian income - it depends on your situation.
     
  • You'll need to work out your residency status to lodge your return, because it affects what you need to report - non-residents must declare Australian source income, but generally don't need to include overseas income. Australian residents for tax purposes must declare all worldwide income.
     
  • Your residency status for tax purposes will also affect your tax payable - non-residents aren't entitled to the tax-free threshold.
     
  • When you complete the rental property section on your return, you'll need to include the income you earned minus allowable deductions. If the value of your deductions is more than your income, you may make a loss from your rental property. We’ll add any income or loss from your rental property in to work out your taxable income – if you have a loss, this may reduce your total taxable income.
     
  • If you need to report this income and pay tax on it in Canada as well as Australia, and you remain an Australian resident for tax purposes, you might be able to claim a foreign income tax offset (FITO). Any FITO you’re able to claim will reduce the amount of tax due on your income by the amount of tax you’ve already paid overseas.

Our guide Going overseas is full of useful information for Australian residents leaving the country longer-term. Check it out and let us know if you have any further questions!
 
Hope that helps.