Will I be taxed on capital I bring into Australia a couple of years after living and working there?
I'm thinking about moving to Australia from New Zealand, finding a job,, and if after a couple of years I really want to stay, selling up property in NZ and buying home in Australia. I have heard there is capital gains tax on money you bring into the country if you are already living and working in Australia. However, if you haven't lived and worked in Australia you can arrive with money to buy a home and not be taxed on it. Is this correct?
From reading the ATO website online, this is my understanding of the situation:
If this NZ property was your primary residence in New Zealand before moving to Australia and you are then buying a new primary residence in Australia, you won't need to pay capital gains tax on it within 6 years of moving over. If you are renting out this property in NZ in the meantime, you'll need to declare that income on your Aussie tax return though.
On the other hand, if this NZ property is an investment property and wasn't your primary residence, you will need to pay capital gains tax.
I would strongly recommend talking to an accountant about this to check though.