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NZ and Aussie couple moving to NZ for a year or so | what is our tax status?

Newbie

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Replies 3

Hello,

 

I'm an NZ citizen and my patner is an AU citizen. We are moving to New Zealand in November - indefinitely but intending to return.

 

We read this guidance: Tax-free-threshold-if-you-are-leaving-Australia-with-the-intention-to-reside-overseas/

 

Am I correct that for the 128 days that we were in Australia during the FY - we apply the Residents rates, and then for all the time after we apply the Foreign Residents rate?

 

We're not sure whether to leave all our savings here, maybe invest it here or transfer it to NZ. If we were to invest in a managed fund now in Australia, would returns be taxed at the marginal rates for Foreign Resident? How does our investment change if we're living and working in NZ instead of AU - does it matter if we return in 24 months?

 

Thank you.

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 2

Hi @HTNSN3

 

If you intend to leave you can use the Determination of residency status – leaving Australia tool for an idea about your tax residency.

 

If you'll be a non-resident for tax purposes when you leave then you'll need to complete an Australian tax return if you receive any Australian sourced income and only declare those amounts. If you're determined to be resident for tax purposes then you declare your world-wide income.

 

Work out what your residency will be first and then if you have more questions then let us know.

 

Ari

 

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hi @HTNSN3

 

If you intend to leave you can use the Determination of residency status – leaving Australia tool for an idea about your tax residency.

 

If you'll be a non-resident for tax purposes when you leave then you'll need to complete an Australian tax return if you receive any Australian sourced income and only declare those amounts. If you're determined to be resident for tax purposes then you declare your world-wide income.

 

Work out what your residency will be first and then if you have more questions then let us know.

 

Ari

 

Newbie

Replies 1

This tool is unable to determine your residency status for tax purposes after you leave Australia.

@AriH 

ATO Community Support

Replies 0

When you work out your residency, a lot of it has to do with your intention therefore only you can determine what your status will be. You may find the common situations helpful instead.

 

Ari