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Posted by jayjaybean 16 years ago.

Do Kiwis have to pay capital gains tax on NZ property?

I'm thinking of moving over to Brisbane but am confused regarding tax status. We intend to rent out our house in New Zealand for about 6 months to a year while we rent in Aussie and see whether we like it. After this time we'll sell in NZ if we are happy in Australia.

I have heard that as long as we are in Aussie on a S.C. Visa we don't pay CGT? However, looking at what I can find I think we would be counted as Australian tax residents and therefore liable. If so, is there any way around this?

4 replies, the latest on 29 March 2024.
Reply from rare-japan 9 months ago.

If you are a resident of Australia for tax purposes when you sell your house in NZ, then you will have to pay CGT on the sale of your house.

Some people think that not being an Australian citizen or permanent resident means they don't have to pay tax in Australia, but this is wrong. The below is from the ATO website:

We don't use the same rules as the Department of Home Affairs. This means you:

  • can be an Australian resident for tax purposes without being an Australian citizen or permanent resident
  • may have a visa to enter Australia but are not an Australian resident for tax purposes.

You can find out more about working out if you are a resident of Australia for tax purposes at:

https://www.ato.gov.au/Individuals/Coming-to-Australia-or-going-overseas/Your-tax-residency/

Reply from mayflower 16 years ago.

SCV is the standard visa for kiwis which is as close to permanent residency/aus citizenship you can get. You would be best to contact IRD in NZ and also whoever deals with capital gain in Aussie for clarification on your situation. Would hate for you to be put wrong here by accident when dealing with such a major asset.

Reply from jayjaybean
OP
16 years ago.

Thanks appreciate your time to answer.

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