Hi all,
I am selling up in NZ (I live in OZ) and would like to know what the tax implications are in returning profit back to Australia. What is the best strategy to legally minimise costs/tax etc.
Thanks
Nugen
Hi there
We were informed (by our solicitor) when we purchased in NZ that we would be liable for CGT if we sold our property, since we were residents in Australia….no other info/strategy to offer sorry as we are planning to hold long term.All the best….
Hi Nugen,
This is a very popular, well discussed topic on these forums (and others). In short, if the properties were bought in your own name then the ATO will count your CG as income. Even having trust structures doesn’t automatically mean you won’t have trouble with the ATO. It’s an issue of where these properties are ‘controlled’ from. Even books on the topic tend to stop short of going into this subject in detail to avoid inadvertently giving financial advice.
Do a search on CGT and you will have hundreds of discussions to weed through. HTH.
-GaryI’d say your liable for cgt unless the property was in a nz trust with a kiwi based trustee (i may be wrong but i think this is right)
More of interest is your nz tax liability.I’d like to know how many of you Aussies who have multiple properties and are selling them up are going to admit you are traders and will pay tax on your profits.
The IRD are targeting overseas profit takers.There is also talk of a cgt but that always happens after a boom.Hi,
Its worse than that if I remember correctly … we have had CGT in NZ for a long time just that it is being taxed at 0% – but the mechanism is already there so the government could impose it with minimum trouble.
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