urbancoyote

Hi Ken and Marisa thank you for your responses It would be a temporary investor visa, so I think you can lodge the application and then leave again, before returning later on. Thank you for the advice about the residency for tax purposes. Cheers

Hi Marisa thanks for responding. I’m more interested in my tax residency and when I would actually become a tax resident of Australia? When I lodged the application or when I returned to live a few months later. thanks mike

Hi I’m planning on emigrating to Australia. I am just looking at a couple of scenarios. If I was to come on shore to a lodge a visa application at the back end of 2019, but then left soon after to go back to the uk, before returning in 2020 on a bridging visa, given I only own property in uk and will have no job in Australia in 2019 would I be a tax resident from when I first lodge the visa or from when I return in 2020? Many thanks mack

Thank you rammy girl for your response So I’d pay money on any pension payments I withdrew potentially in uk and then aus, but with some sort of double taxation agreement and therefore best off not doing the lump sum but just withdraw steadily each year. One other question please. if for example I arrive with a 40k sipp and it ends up being a 200k pot for retirement. In the uk as it is in a sipp pension wrapper I would not pay any capital gains tax or dividend income tax on these funds as it was accruing; just at the end point. In Australia would I pay capital gains tax over the years, and income on dividends, as I sold and bought funds/shares within the sipp or would that not be the case as it is in an overseas pension wrapper? many thanks mack

Hi I'm in my mid 30's and looking at emigrating to Aus near the end of the year. I have the option to put a lump sum in my uk Sipp of around 10k this year and the uk government adds 20% to this amount. This would bump up this pension to about 35k sterling so not that large by any means, so probably not worth transferring to a qrops etc so would keep it in Sipp. In the Uk, you then pay no capital gains or income tax for the life of the pension and you can take a one-off 25% taxfree withdrawal, with the rest taken out as income as you see fit in retirement. My questions are under current rules, if you are an Australian resident for tax purposes 1) Are the funds in your Sipp, taxed in Australia on capital growth and income each financial year, similar to other investments? 2) Are you taxed on the lump sum withdrawal and further income from the pension, at maturation. Given there is 20 years left it hopefully should grow substantially. Just looking for some advice before deciding whether it is worth putting the extra lump sum in the Sipp or not. Many thanks Mack

Thank you Ken and Gbye grey sky for your detailed responses Therefore i could keep cash balances in the UK, after I've become an Aussie tax resident and wait until the exchange rate was more favourable, before sending the funds over, so long as they were only one-way transfers. In terms of investing in your Super, am I right in understanding that under the current rules, you can place a maximum of 25k AUD per year in your Super at 15% tax concessional contribution and 100k none-concessional contribution after tax (x3 if you used three years rollover). Both are taxxed at 10% capital gains during the lifetime of super (if funds held for 12 months+) Then at the end you pay no extra tax on the none-concessional and 15% on the concessional part. Is that right? In order to put $325k into your Super in one year, would you need to have income that year of $325k. If so would the capital gains income count fully towards this income amount or only 50% of it, if you had kept for over 12 months? Also would you need to have been a resident for 3 years before you can put in the 3 years rollover contribution? Also this is just an opinion question. But is there much talk of changing the 50% capital gains allowance for shares/investments held for over 12 months, or does this seem unlikely? Many thanks for any advice and sorry for the long-winded questions. I am just trying to get a feel for the system over there, before i take the plunge. Feel free to point me to any discussion boards, if they answer my question's already. Many thanks Mack

Hi I'm British and currently living in the UK with my Australian girlfriend. We may look to move out to Australia at the end of 2019, depending on a few things. To make the decision easier I would appreciate any help to the following questions. 1) As I understand it the exchange rate on the date at which you become a resident for Australian tax purposes, will be used as a base for working out overseas capital gains in the future. If I move to Australia on a tourist visa and then apply for a de facto 820 visa in Australia, is the date i become resident for tax purposes the date I arrived in the country, the date I lodged my application for the de facto visa, or a later date when I have got my TFN and can officially work? 2) I have some money outside of investments and not gaining any interest in the UK - in various sports betting accounts and a sports betting syndicate specifically and I may choose to keep that money to bet with in the UK. If I did so and then transferred money across 2 years later for example at 1.9 dollars to the pound instead of 1.7 dollars to the pound, would i have to pay a capital gain on the increase in AUD worth, even though the funds are not actually invested in anything, so nothing is being sold and there isn't an actual real capital gain on the money? 3) Do you have to declare every single pound of investments and funds you have overseas when you become an Australian resident for tax purposes, or is this not the case? 4) Furthermore sports gambling is at the moment tax free in the UK and Aus. If I happen to make money after my date of Australian residence for tax purposes and then transferred across in a few years time at 1 pound to 2 dollars for example. Would I still be liable for a capital gain based on the initial 1.7 dollars to the pound rating, when I arrived, even though I made the money well after I became an Australian tax resident? Instead if i had lost for example £50k in sports gambling in the 2 years after I left in the UK, but the exchange rate had gone up to 2 dollars and I decide to send money over, would I still have to pay capital gains on the increase in AUD, despite me actually having lost money in the UK. 5) I also own a small flat in the UK, which we have lived in for the last year. If we were to move to Australia, and become a resident for tax purposes, but only rent in Australia, would I have to pay capital gains on my house in the UK (at 28%) if I was to sell it 3 years later, or would it still be classified as my home and therefore immune from capital gains tax, as I didn't yet own one in Australia? Obviously I may win or lose sports gambling going forward and i understand losses can't be used as a capital loss for tax purposes. I know this a niche area, but any help or advice to let me understand the situation better, is much appreciated. Thanks Mack