Trans-Tasman taxes

Question from John updated on 22nd June 2018:

As a New Zealand Permanent Resident, if I buy an Australian Investment Apartment for $500,000 what CGT and/or other costs will I incur upon selling under new Australian legislation? 

Our expert Mark Withers responded:

On 9 May 2017 the Australian government announced that Australia's foreign resident capital gains tax (CGT) regime will be extended to deny foreign and temporary tax residents access to the CGT main residence exemption. This change applies from the date of announcement.

So as a New Zealand resident buyer you must file a tax return in Australia declaring the Australian derived income. This income is also assessable in New Zealand after making foreign exchange conversions. Credit is given in New Zealand for any income tax already paid in Australia. Gains on the sale of the Australian property will be subject to capital gains tax in Australia. Advice on the specific amount of tax imposed on a capital gain in Australia should be sought from an Australian tax adviser.




Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

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