Tax treatment of capital gains
The ATO’s recently released interpretation of the tax treatment of capital gains distributed by an Australian discretionary trust to non-resident beneficiaries will have a significant negative impact for some.
ATO take ‘gloves off’ on overseas income
The ATO has again flagged that underreporting of foreign income is an issue, but this time the gloves are off.
Tax warning on overseas income
Do you earn income overseas? A recent case highlights why you might pay more tax than you thought on foreign income. If you are an Australian resident and earn income from overseas, such as income from investments, sale of assets such as property, distributions from foreign trusts, etc., you will generally need to declare that…
Foreign residents living in Australia
CGT and the family home If you are a foreign citizen currently living in Australia but planning to leave Australia at some stage in the short to medium term then these new rules are likely to impact on you. If you owned your home at or before 9 May 2017, you can access the main…
Expats and foreign residents beware
CGT and the family home Expats and foreign residents beware The family home of foreign residents and expats may be taxed if legislation before Parliament is passed by the Senate. If you are a foreign resident living in Australia or an Australian working overseas who owns residential property in Australia, this reform potentially has serious…
What is main residence exemption?
Generally, you do not pay CGT on the sale of your private home. A full exemption should be available if the following conditions are met: You are an individual who is selling a dwelling or an ownership interest in a dwelling; The dwelling has been your home for the entire ownership period; The dwelling has…
Santa’s Tax Crises
A light-hearted look at the complexity of Australian tax laws Dear Santa, Thank you for the opportunity to provide tax advice for your operation. We are pleased you have initiated this advice as the Australian Taxation Office (ATO) is looking closely at any business or individual that operates within Australia but has significant transactions or operations…
Selling a property valued at $750k or more
What everyone selling a property valued at $750k or more needs to know Every vendor selling a property needs to prove that they are a resident of Australia for tax purposes unless they are happy for the purchaser to withhold a 12.5% withholding tax. From 1 July 2017, every individual selling a property with a…
Main residence exemption removed for non-residents
Main residence exemption removed for non-residents The Federal Budget announced that non-residents will no longer be able to access the main residence exemption for Capital Gains Tax (CGT) purposes from 9 May 2017 (Budget night). Now that the draft legislation has been released, more details are available about how this exclusion will work. Under the…