CGT issues from OZ?

Our Experts Answer:

That's a good question. There are two aspects to it. Firstly the Australian tax residency soy yu need to contact an Australian accountant that understands rules for migrants to Australia. In particular, you need to ask them whether you qualify as a temporary migrants exemption there? If you don't qualify, when would you become an Australian tax resident? What does that mean in terms of capital gains tax on sale of an overseas rental. If you have an oustanding loan on your New Zealand rental, you should check with the Australian accountant whether you have other Australian tax liability if you have a foreign loan. Re New Zealand tax residency, have you contacted the Inland Revenue Department to ascertain that you have become a non New Zealand tax resident? You cannot "assume" you will become a non New Zealand tax resident just because you've moved overseas. Whether you qualify fas a non New Zealand resident or not, you still have to file a New Zealand tax return for the net rental profit/loss.