Returning to Australia? Be wary of tax traps in today’s US tariff impacted markets.
We have been working with a number of Asian based Australian expatriates planning on return shortly to Australia but recent market events are complicating their planning.
Expatriates resuming Australian tax residency are required to revalue their foreign shares and managed funds at market value on the date they become tax resident.
In today’s climate of depressed markets, this often locks in a low cost base. When asset values recover, you could face a sizeable Australian capital gains tax bill—even if you haven't sold.
But it gets more complex.
On return to Australia, you need to wait 12 months before disposing of assets such as overseas and managed funds in order to obtain the 50% capital gains tax free concession on any capital gain on the value of assets at date of arrival and sale date after 12 months. Those gains could include gains from recovering markets pre tariff markets.
For some executives , the prudent strategy may be to delay their return until markets stabilise.
Timing your return—and the way your assets are structured—can make a significant difference to your tax exposure and long-term financial wellbeing.
Best wishes
Regards,
Dale Hoy
m) +61 419 364 994
Here are 2 ways I assist Australian expats plan their repatriation.
1) Download my checklist on the 7 key areas for Australian expatriates to start exploring with their advisor.
2) Book a private conversation with me at your convenience.
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