Taxing land question

Our Experts Answer:

Because the land is in New Zealand, our country would hold the primary taxing rights over any income generated from it. This might include taxation under the land transaction provisions if purchased for onsale or if it has been subdivided, etc.

However, Australia also has a capital gains tax. On becoming an Australian tax resident, the property would have a deemed cost at the market value when you became resident. Australia does have some temporary resident exemptions from tax on foreign income depending on your circumstances. For this reason, you should seek tax advice in Australia before disposing of the land to check what issues may arise there.