Australian Expat Tax Advice.

When Australians decide to make the move overseas, many often don’t take the time to get Australian expat tax advice or do any form of tax planning.
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Arguably, your tax strategies and planning are just as important as which country you’re looking to move to or where your children will go to school. There are significant costs that can come with poor tax planning for expats, and you need to be proactive in your approach to tax planning strategies before moving overseas and also before returning home.

Some of the areas that you need to seek Australian expat tax advice on include:

Investment Properties

Many Australians, choose to purchase an investment property when living overseas with the intention of using it as their principal place of residence when they return. It’s important to consider tax implications and also the fact that you will not likely qualify for any Government exemptions or bonuses at the time of purchase.

Similarly, if you own a property as an owner-occupier and then move overseas only to rent that property out, the laws around capital gains tax have recently changed, and you could find yourself liable should you choose to sell that property whilst you are a non-resident expat.

Retirement Savings

If you’ve been living and working overseas and contributing money to a local pension or superannuation scheme, you will need to consider the costs and tax implications of rolling those funds over into an Australian-based superannuation fund when looking to repatriate back to Australia.

Similarly, investments in managed funds and their CGT implications can change when your residency status changes.

Tax Credits

The most common situation where this occurs is with expats who own Australian property that is receiving rent as this is considered Australian Taxable Income (ATI) and the expenses incurred in holding the property exceed this amount. This can be quite considerable at times, especially if the property is a high-quality new dwelling that has large non-cash depreciation deductions allowed under Div 40 & 43 ITAA97.

In this situation, the taxpayer is allowed to carry forward these tax credits to use when required at a later point in time. This could be when repatriating and then earning personal exertion income in Australia, sale of the property and managing Capital Gains Tax or acquiring other property that may be positively geared.

SMSFs

The laws surrounding SMSFs are complex and there are a number of steps you must take to remain compliant. Changes to tax residency could potentially cause the SMSF to become non-compliant and the mooted changes from the 2021 Budget will also need to be considered once they are legislated.

These are just some common examples of what should be considered when looking to become an expat, and is by no means exhaustive. That is why it is always important to seek specialist advice before actually making any significant changes for the expats living in the UK, USA, Hong Kong, Singapore and other areas.

In this week's Q&A, we will answer a question from one of our viewers.

"Will future interest rates create more opportunity for middle-range income earners to invest in property?"

Lower interest rates generally make borrowing cheaper, potentially increasing accessibility to property investment, but the overall economic environment, housing market conditions, and government policies also impact affordability and investment incentives. 

If you have any questions or need personalized information based on your circumstances, please don't hesitate to contact us.

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As we navigate the dynamic landscape of the Australian economy, staying informed and engaged is essential. With that in mind, I'm excited to invite you to our upcoming Quarterly Review, scheduled for 20th/21st February.

We will delve into the current state of the Australian economy, shedding light on the challenges and opportunities within the mortgage finance market amidst these extraordinary times.

To secure your spot, please register through the following link: https://rebrand.ly/Feb2024_quarterlyreview

If you have any questions or concerns, please don't hesitate to reach out.

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In this week's Q&A, we delve into a viewer's query regarding potential windfalls for Australian expats earning in US dollars.

The value of the Australian dollar is subject to a complex interplay of factors, including interest rate decisions, economic indicators, commodity prices, central bank policies, political stability, and market speculation.

These elements collectively influence the performance of the AUD in currency markets. Notably, Australian expats earning in US dollars may find favourable conditions, particularly when contemplating future investments such as homes or properties in Australia.

The dynamics of these factors could provide a beneficial tailwind, enhancing the potential outcomes for expatriates considering financial moves back home.

If you have any questions or need personalized information based on your circumstances, please don't hesitate to contact us.

#australia #economy #finance #investment #realestate #currency #growth #strategy #advice #financialplanning #propertyinvestment #2024 #wealth #future #sydney #brisbane #dreamhome
In this week's Q&A, we will answer a question from one of our viewers.

"Will the Australian Dollar fall further?"

Predicting currency movements is highly uncertain and influenced by numerous factors such as economic indicators, geopolitical events, and market sentiment. 

Various factors could affect the Australian dollar in 2024. These include changes in interest rates, global economic conditions, commodity prices and government policies.

If you have any questions or need personalized information based on your circumstances, please don't hesitate to contact us.

#australia #economy #finance #inflation #currency #investment #financialplanning #advice #strategy #planning #future #wealth #success #investor #currencyexchange #growth #propertyinvestment
In this week's Q&A, we will answer a question from one of our viewers.

"Will housing prices decline now that interest rates are high?"

While higher rates can increase borrowing costs and potentially dampen demand for homes, the effect is nuanced. High-interest rates may seem like a disadvantage for those who need to take out a loan or buy something on credit, but investors can benefit by planning ahead and investing in suitable types of investments.

If you have any questions or need personalized information based on your circumstances, please don't hesitate to contact us.

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In this week's Q&A session, we will answer a question from one of our viewers.

"How can I rent and invest while also planning to move offshore?" 

Rentvesting is a great option that offers many benefits. One of the key advantages is that you can choose to live wherever you like rather than being limited to the areas you can afford to purchase a property.

As an investor, you can generate income through rent and benefit from tax deductions such as maintenance costs, mortgage interest, and property management fees, which are not usually available to owner-occupied properties.

If you have any queries or require personalized information based on your circumstances, please don't hesitate to contact us.

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In this week's Q&A, we will answer a question from one of our viewers.

"What are the ways to save on land tax when I am living overseas?"

It is important to note that each state and territory has its own land tax structures. These rules include exemptions, thresholds, and rates. Therefore, we'll be exploring the specific structure that applies to this individual.

If you have any questions or require personalized information based on your circumstances, please feel free to contact us.

#australia #sydney #tax #property #investment #structure #advice #finance #financialplanning #realestate #aussieexpat #future #growth #success #investor #investinrealestate #wealth
In this week's Q&A session, we will be answering a question from one of our viewers:

Do I need to pay capital gains tax before repatriating to Australia?

Capital gains tax (CGT) is a tax imposed on the profits made from the disposal of assets. Therefore, if there is no asset disposal, there won't be any capital gains created and consequently, no capital gains tax will be required to be paid.

If you would like to know more about this topic or have any specific questions about your situation, please feel free to contact us for guidance.

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