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Non-resident tax advice transferring money from overseas to buy property.

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Hi,


I am currently a non-resident for tax purposes with the ATO to avoid double taxation for my overseas earnings. I have no other substantial assets or earnings in Australia at this time other than a bank savings account. I am an Australian/dual citizen. 

1. I had applied for non-resident status through a tax lawyer some years ago. Is there a way to check if that status is still current...either on my MyGov account or ATO website somewhere? 

2. I transfer a portion of my overseas earnings quarterly into my Australian account as I am saving for a deposit to buy my first home soon. I do not declare this in my tax returns as a non-resident. ( I was advised I still needed to lodge a tax return for the interest earned on my Australian bank account though I had advised my bank of my non-residency). But I am wondering if I still need to notify ATO of this transfer of money into Australia from overseas? What do the rules say regarding this?


3. I hope to move back to Australian again full time sometime in the middle of next year and as such, I will then have to declare myself a resident for tax purposes. I plan to buy a home and for that reason, I will be transferring money from overseas to part-finance the purchase. Given there are foreign currency outflow restrictions by the government of this Asian country I work in, the transfer of money will have to be made in a couple of smaller transactions rather than a lump sum! Also, some of the funds may be transferred through indirect/non-traditional but legal channels due to the limitations mentioned above. Will that have any kind of tax consequences with the ATO and if so what?

 

Sorry about the long winding questions but I guess the main gist of my question is how does the ATO treat or view a large sum of money transferred from overseas purely for the purpose of investment or buying a property.

 

Thank for any advice.

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Hi @ExpatAUBD

 

Welcome and thanks for your post.

 

Your residency status will be reflected on your last tax return. In MyGov see ATO online and go to tax/lodgements/income tax/History and look for your last lodgement made.Really though that is you telling us your status after you have established it be it by a private ruling if complex or our online tools generally. See Residency tests for tax purposes.

 

As you appreciate that may change from year to year such as when you return to reside again in Australia permanently.

See Moving to Australia permanently  Essentially though money brought from overseas is not taxable when it constitutes income from money earned overseas as a non-resident. Just keep appropriate records so if the ATO or ASIC were to query it you can establish the source.

 

I hope this help.
Kind regards
MarkA

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Highlighted

Best answer

Community Support

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Hi @ExpatAUBD

 

Welcome and thanks for your post.

 

Your residency status will be reflected on your last tax return. In MyGov see ATO online and go to tax/lodgements/income tax/History and look for your last lodgement made.Really though that is you telling us your status after you have established it be it by a private ruling if complex or our online tools generally. See Residency tests for tax purposes.

 

As you appreciate that may change from year to year such as when you return to reside again in Australia permanently.

See Moving to Australia permanently  Essentially though money brought from overseas is not taxable when it constitutes income from money earned overseas as a non-resident. Just keep appropriate records so if the ATO or ASIC were to query it you can establish the source.

 

I hope this help.
Kind regards
MarkA