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Dividends received before migration to Australia

Newbie

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We migrated to Australia to live here indefinitely and arrived mid February 2020. Back in our home country, my husband and I owned a business together. This business ceased trading at the end of January 2020 and the remaining cash reserves were paid out to us as a dividend in our home country, before we left for Australia. However, the final set of financial statements for this business which approved this dividend distribution, was only signed and approved by my husband and I at the end of February 2020 - after our arrival in Australia. Would this dividend be taxable in Australia and do we need to include this dividend income in our tax return?   

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Most helpful response

ATO Community Support

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Hi  @Meinen,

 

Thank you for your reply. Any worldwide income you have earned since becoming an Australian resident needs to be included in your tax return. If you are still unsure you can use the Do I need to lodge calculator? You may also write in for a response from our early engagement team

 

Hope this helps.

 

Regards,

Jodie2. 

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Devotee

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Hi @Meinen

 

Thank you for posting.

 

If you are an Australian resident you are taxed on your worldwide income. 

 

This means you must report all income you received from foreign business activities on your Australian tax return.

 

The tax treatment of your income depends on a number of factors that are detailed on our foreign business income web page.

 

Hope this is helpful.

Newbie

Replies 1

Dear DeniseATO,

Thank you for your response. I have gone through the information in the link provided in your message but I'm still unsure whether this income should be included in my tax return or not.

We became Australian tax residents upon our arrival which was mid-February 2020, so from this date onwards we have to declare our world-wide income.

My question is more about whether this dividend was earned before we became Australian tax residents as it was paid out and received by us before we arrived in Australia, and therefore not assessable?

OR

Was the dividend earned at the end of February 2020 on the day the financial statements was approved and therefore after we became Australian tax residents?

Most helpful response

ATO Community Support

Replies 0

Hi  @Meinen,

 

Thank you for your reply. Any worldwide income you have earned since becoming an Australian resident needs to be included in your tax return. If you are still unsure you can use the Do I need to lodge calculator? You may also write in for a response from our early engagement team

 

Hope this helps.

 

Regards,

Jodie2.