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Re: Should I declare my NZ rental property income on on an AUS tax return

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Newbie

Views 454

Replies 6

Hi,

I'm writing to the ATO as I'm getting differant answers from TAX experts I've engaged in this sutuation.

Background:

Myself and my famlily arrived in AUS early 2020, we are on a Subclass 444 Special Category visa.

Both myself and my wife work in AUS, this makes us Australian resident for tax purposes.

 

I found this, please read - https://www.ato.gov.au/misc/downloads/pdf/qc18869.pdf

https://en.wikipedia.org/wiki/Special_Category_Visa

Because we arrived after 2001 we are on a "non-protected Special Category visa" this makes us a "temporary resident" I think?

 

My Question is: Do we declare our rental income on our income tax return for our NZ propery?

 

 

 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

Taxicorn

Replies 0

@PieterP 

 

As you are considered to be a Temporary Resident for tax purposes you don't include any NZ income, including any possible CGT when you sell the property.

 

https://www.ato.gov.au/law/view/document?docid=TXD/TD201218/NAT/ATO/00001

 

 

6 REPLIES 6
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Devotee

Replies 4

If you are a resident for tax purposes you will do an Australian tax return and declare any foreign source income and any tax you have paid in that in the other country. So yes, you will declare the nz rental income.

Newbie

Replies 3

Hi Wonka5,

 

Thanks for taking the time to answer my post, but I need a much clearer explanation. We already know what you posted.

Have you read the letter, this is just a short snippet from it:

 

"You may be treated as a temporary resident for income tax purposes if you are an
Australian resident for tax purposes and you also hold a temporary migration visa.


You don't have to pay tax on most of your foreign income if you:


are an individual who is an Australian resident for tax purposes
satisfy the requirements of being a temporary resident."

 

As you can see, it is much more complicated and I need a good explanation on why we should delare or why we should not.

 

Thanks

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Best answer

Taxicorn

Replies 0

@PieterP 

 

As you are considered to be a Temporary Resident for tax purposes you don't include any NZ income, including any possible CGT when you sell the property.

 

https://www.ato.gov.au/law/view/document?docid=TXD/TD201218/NAT/ATO/00001

 

 

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Devotee

Replies 1

Complicated questions should be sent in to the ATO in writing for a private ruling. This is the only way to get binding advice. Or it is recommended people with complicated situations get professional tax advice. This site is for discussion and general advice.
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Taxicorn

Replies 0

@wonka5 

 

Thanks @wonka5  I was giving him Professional advice tax advice.

 

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Community Support

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Hi @PieterP 

 

We have answered a similar question previously about NZ income.

 

Thanks, Ari