Expatriate Tax Myths

Australian expatriate tax myths

Australia has a complicated tax system; being an expatriate adds another level of complexity

We have collected some common myths below regarding taxation if you are an Australian expatriate - just to be clear, these statements are (usually*) WRONG.

1. If I live outside Australia for more than six months in any year then I will be tax non-resident
 
2. If I travel for two years or more outside Australia, without establishing a home, I should be tax non-resident
 
3. Capital gains tax will not apply on the sale of my investment property in Australia if I am tax non-resident
 
4. I don't need to submit an Australian tax return if I am non-resident, even though I receive rental income in Australia
 
5. I can't be non tax resident if I continue to own a home in Australia
 
6. Even though I am tax resident in Australia,  I don't have to declare my overseas income In Australia if it has already been taxed in the country in which I earned it.
 
7. I am not taxable on any capital gains made on the sale of shares, which I purchased while I was resident, if the sale occurred while I was tax non-resident.
 
8. My superannuation income will not be taxable if I am over 60 and live overseas, because it is not taxable in Australia
 
9. I am not entitled to a Living Away from Home Allowance (LAFHA) as part of my remuneration package in Australia because I am an Australian citizen.

 

For more information about expatriate taxation see Exfin, and to access professional advice, whether in Australia or anywhere overseas.

* It's not usually wise to be 100% emphatic about tax - much depends upon your individual situation!