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?
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/
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.
Thanks appreciate your time to answer.
Yes, you will have to pay CGT.
Check this article:
Will I be taxed for the sale of my house in New Zealand? | ATO Community