Announcements
Looking for information on the JobKeeper extension? Watch the video in our latest news article.

ATO Community

Disclose overseas assets over AU$50k

Highlighted

Newbie

Views 1652

Replies 3

Hi,

   I recently became a permanent resident in Australia ad subsequently an Australian citizen.

I have some money in overseas bank account, with a total sum over AU$50k . All that money was earned before I moved to Australia so there was no tax to be paid to ATO at that time. However, it looks like ATO still requires to disclose any overseas assets worth $50k+.

As foreign income and capital gains don't have to be declared by temporary residents, I never disclosed to the ATO those $50k+ overseas assets when filing my tax returns to the ATO as a temporary resident (under Visa 457).

Unfortunately, I then forgot to disclose those assets also after becoming a permanent resident in 2017.

 

Was I correct to assume that I was not required to disclose overseas assets when I was a temporary resident?

Also, can I amend the tax returns since I became a permanent resident in 2017 in order to disclose the $50k+held overseas?

 

Thanks for any help/clarification that you may provide.

Cheers,

Mack

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

Community Support

Replies 2

Hi @Mack

 

Welcome to our Community.

 

Regarding declaring foreign income as a temporary resident, you are correct. If you were a temporary resident, the only foreign income you will need to show is income that you earned from foreign employment while a temporary resident.

 

For more information about the temporary resident exemption, refer to the foreign income exemption for temporary residents – introduction page on our website.

 

Regarding the requirement to answer the $50,000 overseas asset question, you are still required to answer it despite being a temporary resident. This is because the temporary resident exemption is specifically for income (except employment), not assets.

 

For more information, refer to 20 Foreign source income and foreign assets or property 2019 in our Individual tax return instructions 2019 guide on our website.

 

You will notice that the temporary resident information makes no mention about overseas assets. If you follow the instructions, you will still be required to answer the overseas assets question. In turn, you were required to answer yes to this question if your overseas assets totalled A$50,000 or more, even as a temporary resident.

 

To ensure that your previous tax returns are accurate, we recommend that you submit amendment requests for the affected returns. For more information on how to do that, you can check out the amendment requests 2019 page.

 

Hope this helps.

 

Thanks,

 

ChrisR

3 REPLIES 3
Highlighted

Most helpful response

Community Support

Replies 2

Hi @Mack

 

Welcome to our Community.

 

Regarding declaring foreign income as a temporary resident, you are correct. If you were a temporary resident, the only foreign income you will need to show is income that you earned from foreign employment while a temporary resident.

 

For more information about the temporary resident exemption, refer to the foreign income exemption for temporary residents – introduction page on our website.

 

Regarding the requirement to answer the $50,000 overseas asset question, you are still required to answer it despite being a temporary resident. This is because the temporary resident exemption is specifically for income (except employment), not assets.

 

For more information, refer to 20 Foreign source income and foreign assets or property 2019 in our Individual tax return instructions 2019 guide on our website.

 

You will notice that the temporary resident information makes no mention about overseas assets. If you follow the instructions, you will still be required to answer the overseas assets question. In turn, you were required to answer yes to this question if your overseas assets totalled A$50,000 or more, even as a temporary resident.

 

To ensure that your previous tax returns are accurate, we recommend that you submit amendment requests for the affected returns. For more information on how to do that, you can check out the amendment requests 2019 page.

 

Hope this helps.

 

Thanks,

 

ChrisR

Highlighted

Newbie

Replies 1

Thanks for your reply, ChrisR.
I will try to amend the tax returns for the previous years so that they will include the disclosure of AU$50+ foreign assets.
Hopefully I will be able to amend also those tax returns that are older than 3 years.

Cheers,
Mack
Highlighted

ATO Certified Response

Community Support

Replies 0

Hi @Mack

 

Thanks for your reply.

 

If you have any issues submitting an amendment due to the time limits, you may be able to lodge an objection. For more information about the time limits on income tax amendments and your options, refer to our website.

 

Hope this helps.

 

Thanks,

 

ChrisR