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Tax Liability for Australians living overseas

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Arora | 11 Aug 2015, 05:33 PM Agree 0
I am an Australian living and working overseas with no taxable income in Australia. I visit Australia few times a year for social and work reasons. If I lease a house in my name, would I be required to file a tax return even though my stay in Australia would be at max 2 months a year?
  • Ozzie in the Middle East | 13 Aug 2015, 06:59 PM Agree 0
    Broadly speaking, Yes. Your income in Australia is liable. As a result you would need to file a tax return for the rental income. This income can be offset by any running costs associated with the property including rates, rental management fees and interest on any mortgages. In theory you could be running at a tax loss (negatively geared) and carry your tax losses forward for up to 7 years. Meaning if you eventually headed back you may not pay tax for a little longer :-)

    These days to be deemed a non resident for tax purposes you need to establish your status based on "intent" rather that purely a no of days abroad. If you have not intent of returning you wont have any risk on your foreign income. You are able to travel back to Oz for holidays without jeopardizing this status.

    Hope that helps
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