Posted by katy on 17/12/2008

If I sell my house in NZ and take my money to Australia, do I pay any tax other than Capital Gains?

I am an NZ citizen but a permanent resident in Australia and want to sell my rental property in NZ to buy a house to live in in Australia.

#1 response from Jen at 09:55 on Fri, 8 May 2009

I'm no expert but I wouldn't have thought you would pay anymore tax other than Capital Gains. Of
course once it goes into the bank here any interest you make would be taxed. Once you buy a
house your going to pay the usual stamp duty, searches, real estate and lawyers fees etc.
They say an extra $20,000 is spent when buying a house. Don't worry your not going to miss
out paying for Rudd's stuff ups.

#2 response from Rob at 08:52 on Thu, 21 May 2009

Listen, you don't have to pay capital gains tax if the purpose for purchasing your property wasn't to make a capital gain. Basically you bought the house in NZ and the reason you bought it was for the purpose of earning the rental income (on which you already paid tax).

#3 response from KarlInOZ at 07:28 on Sat, 17 August 2013

I'm not sure where Rob got his information from. I'm in the process of doing exatly what Katy was wanting to do - sell our NZ home which we had initially lived in but have been renting out for the past 15 years. I have had extensive talks with the ATO and paid for advice from a tax accountant. I wish what Rob said were true but it seems that if you sell your NZ home you get to pay the Australian government for the privilege. And what's more, I asked the accontant - if I were to go back to NZ for 2 years, lose my tax residency then sell our NZ home he said then a tax avoidance clause kicks in and if you don't happen to sell the home within the intial 2 years but sell it at *any* time in the future you will be liable for CGT to the ATO. That sounds incredible to me - that a foreign government can have dibs on your money when you no longer live there but I have checked with several other accountants who have told me that is the situation.

#4 response from kernz at 21:46 on Fri, 26 September 2014

Does anybody have example of how much tax would apply, please? The link to the CGT information didn't give us any concrete figures (or we looked at the wrong place). Thanks

#5 response from zara88 at 06:32 on Mon, 8 June 2015

What if you are not an Australian Citizen yet? Just a Special Category Visa holder? Do we have to pay the capital gains tax and what if the house was originally bought to live in or if it is a rental in a Trust?

Technically the trust owns it, doesn't it? Not sure why SCV holders would be expected to pay CGT when they are not even entitled to any help from the taxes they are paying in Australia. Is there an exemption period for CGT? I have heard from a NZ accountant that there is a 6 yr exemption for paying CGT in Australia. How long would we need to be living back in NZ to be considered not Australian residents for tax purposes? Any help with these questions from someone who has expert advice only would be appreciated thanks.

#6 response from reba01 at 08:59 on Sat, 19 December 2015

great, i have the same concerns, does anybody know answer to zara88 question?

#7 response from Yarrum2016 at 22:27 on Sat, 29 October 2016

Hypaflectly if I was buying a property in WA and renting it out for the next 3 to 4 years before moving over to live and then rented the NZ property out for a similar period after moving and then decided to sell what would the CGT be based on, if NZ property was lived in for the past 25 years - would the gain be derived from what it was bought for then sold?

#8 response from RPaul at 20:56 on Sat, 14 January 2017

I have same question as zara88. Can anyone who understand this well answer please?

#9 response from Extinct at 08:54 on Tue, 9 January 2018

My question is identical to zara88. Has anyone seen an answer to this issue anywhere?

#10 response from Betteboo at 05:56 on Thu, 15 March 2018

Same question as Zara88. Where can I go to get concrete info. Lots of different information around.

#11 response from mick at 07:39 on Sun, 15 July 2018

I have a question. My wife and I are Australians and have owned a rental property in New Zealand since 2009. The double taxation agreement came into for just after we purchased our property.
We have now sold the property and want to know if CGT needs to be paid in Australia as the double taxation agreement was not in force at time of purchase and NZ does not tax capital gains.
I hope somebody who knows a bit about this area might be able to shed some light on this. Thanks.

#12 response from mick at 02:32 on Mon, 16 July 2018

I have a question. My wife and I are Australians and have owned a rental property in New Zealand since 2009. The double taxation agreement came into for just after we purchased our property.
We have now sold the property and want to know if CGT needs to be paid in Australia as the double taxation agreement was not in force at time of purchase and NZ does not tax capital gains.
I hope somebody who knows a bit about this area might be able to shed some light on this. Thanks.

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