What are the tax implications of large investments made by foreigners in Australia?

Answers

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  James Hall

  ANZ Migrate

  May 18, 2021

  As a general statement (and not tax advice), once you are living in Australia, you are subject to worldwide taxation, including capital gains. There are exemptions for this, including treaties with many countries to avoid double taxation. In addition, there are special exemptions for holders of a temporary residence visa in Australia which can provide exemptions on foreign income; this is one of the reasons many of my clients under the Significant Investor Visa choose to extended the temporary visa period before moving to permanent residency. The temporary visa period can be extended up to 8 years (possibly 9 years from July 2021).

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  Venkateswaran Palat Krishnan

  Ven Waran

  May 17, 2021

  Australian tax system will look at whether you are a “tax resident” in Australia in the given financial year, irrespective of the nationality. Also, the type of visa and whether you usually reside in Australia are also taken into consideration. If your visa is provisional, or temporary, or recent and have not spent at least six months in Australia during that financial year, you will not be considered a tax resident and need to pay tax in Australia only for income earned in Australia. If you have been a “usually resident” and lived in Australia continuously for six months or more, or you have come to Australia and live here permanently, or you go overseas temporarily, and you do not set up a permanent home in another country, you will be an Australian resident for tax purposes and pay tax on global income. 

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  Christina Lim

  Regis Gateways Pty Ltd

  May 18, 2021

  If you are going to apply for residency in Australia under the 188 visa migration program, you would be classified as a temporary visa holder (with provisional rights for permanent residence later). For basic information, kindly also refer to this government link on taxation for further information relating to taxation for foreigners: https://www.ato.gov.au/Individuals/coming-to-australia-or-going-overseas/Your-tax-residency/Foreign-and-temporary-residents/#Temporaryresidents