Go Back  British Expats > Living & Moving Abroad > Australia
Reload this Page >

Tax for a temporary resident? (CGT on UK house sale)

Tax for a temporary resident? (CGT on UK house sale)

Thread Tools
 
Old Jul 15th 2010, 6:48 am
  #1  
Forum Regular
Thread Starter
 
Joined: Sep 2009
Location: Brisbane, QLD
Posts: 34
gunn1 is an unknown quantity at this point
Default Tax for a temporary resident? (CGT on UK house sale)

Hi there

I'm hoping someone out there can give me some direction on this...

I'm here as a temporary resident, with my partner on his 457 working visa - he hasn't applied for permanency yet (but will in a years' time, under the ENS / sponsorship).

We've bought a house here, and I'm looking to sell my flat in the UK... I don't get medicare or any other support here, as I fall into the temporary category, but I've heard I may have to pay some tax on my UK house sale, as I've shown 'intentions to be permanent' here by buying a house...

Can that be right?? I thought you weren't due any tax on global income until you were permanent in Australia? (unless of course I've earnt it here). NB I'm not due CGT in the UK, as I've been away for 10 years...

Hope someone can shed some light!!

K
gunn1 is offline  
Old Jul 19th 2010, 3:31 am
  #2  
Social Grenade Thrower
 
paddyo's Avatar
 
Joined: Jan 2008
Location: South Coast, NSW
Posts: 3,625
paddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Originally Posted by gunn1
Hi there

I'm hoping someone out there can give me some direction on this...

I'm here as a temporary resident, with my partner on his 457 working visa - he hasn't applied for permanency yet (but will in a years' time, under the ENS / sponsorship). are you in receipt of LAFHA??? If not for accom then you should still be eligible foir the Food element if on a 457

We've bought a house here, and I'm looking to sell my flat in the UK... I don't get medicare or any other support here

Why not??? You are entitled to a Medicare Card under the Reciprocal Health Care Agreement (RHCA), as I fall into the temporary category, but I've heard I may have to pay some tax on my UK house sale, as I've shown 'intentions to be permanent' here by buying a house... No, buying a house does not mean you intend to be permanent, it can be a fiscal or personal choice to buy rather than rent

Can that be right?? I thought you weren't due any tax on global income until you were permanent in Australia? (unless of course I've earnt it here). NB I'm not due CGT in the UK, as I've been away for 10 years...

Hope someone can shed some light!!

K
See in red, I think you are right but you may have some costs if you want to transfer your profit (hopefully!!) to Oz, unless, you didn't transfer any over initially.
paddyo is offline  
Old Jul 19th 2010, 3:36 am
  #3  
Migration Agent
 
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Alan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond reputeAlan Collett has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

The attached might be of some assistance - 457 visaholders are usually tax resident, but find themselves within a special sub-category of tax residents.

See also: http://www.ato.gov.au/individuals/co....htm&page=3&H3

Best regards.
Attached Files
File Type: pdf
Tax FAQs.pdf (59.6 KB, 1173 views)
Alan Collett is offline  
Old Jul 19th 2010, 6:56 am
  #4  
Forum Regular
Thread Starter
 
Joined: Sep 2009
Location: Brisbane, QLD
Posts: 34
gunn1 is an unknown quantity at this point
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Thanks - I've printed these off and will have a look (incidentally, Alan, I'm the same person who's just e-mailed you and you've referred me to your UK colleague )

I'm definitely not due medicare - had that one checked and double-checked with the medicare chiefs (because even though I'm a naturalised Kiwi, I'm here de facto with my South African partner, and it's a 'weakest link' situation. I'm temporary through him, apparently). It all gets messy... but hopefully the outcome won't be too tax painful...
gunn1 is offline  
Old Jul 20th 2010, 1:35 am
  #5  
JAJ
Retired
 
JAJ's Avatar
 
Joined: Apr 2004
Posts: 34,649
JAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Originally Posted by gunn1
I'm definitely not due medicare - had that one checked and double-checked with the medicare chiefs (because even though I'm a naturalised Kiwi, I'm here de facto with my South African partner, and it's a 'weakest link' situation. I'm temporary through him, apparently).
What you say makes absolutely no sense. If you are a New Zealand citizen then you can go to a DIAC office with your NZ passport and get a Special Category Visa stamped in your passport. That frees you from the 457 visa restrictions, although it doesn't give permanent resident rights.

It doesn't matter how you got your NZ citizenship or what your partner relationship is.

You could then sponsor your partner for a 461 visa, which isn't ideal but is a better visa than the 457. Would give him more leverage with his employer to get PR sponsorship (and 461 visa is eligible on the same basis as 457 for ENS after 2 years without skill assessment).

I am not aware of any negative impact on your prospects of gaining PR, or your tax situation, by switching visas but perhaps you could discuss that with someone like Alan to be sure. As an NZ citizen living in Australia on an SCV you would have to pay the Medicare levy (but you'd get Medicare) and you'd obviously have to change your driving licence over.
JAJ is offline  
Old Jul 20th 2010, 2:13 am
  #6  
Social Grenade Thrower
 
paddyo's Avatar
 
Joined: Jan 2008
Location: South Coast, NSW
Posts: 3,625
paddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Originally Posted by JAJ
What you say makes absolutely no sense. If you are a New Zealand citizen then you can go to a DIAC office with your NZ passport and get a Special Category Visa stamped in your passport. That frees you from the 457 visa restrictions, although it doesn't give permanent resident rights.

It doesn't matter how you got your NZ citizenship or what your partner relationship is.

You could then sponsor your partner for a 461 visa, which isn't ideal but is a better visa than the 457. Would give him more leverage with his employer to get PR sponsorship (and 461 visa is eligible on the same basis as 457 for ENS after 2 years without skill assessment).

I am not aware of any negative impact on your prospects of gaining PR, or your tax situation, by switching visas but perhaps you could discuss that with someone like Alan to be sure. As an NZ citizen living in Australia on an SCV you would have to pay the Medicare levy (but you'd get Medicare) and you'd obviously have to change your driving licence over.
I'm with JAJ on this one, I thought the NZ aspect was a no brainer.
paddyo is offline  
Old Jul 20th 2010, 4:59 am
  #7  
Forum Regular
Thread Starter
 
Joined: Sep 2009
Location: Brisbane, QLD
Posts: 34
gunn1 is an unknown quantity at this point
Default Re: Tax for a temporary resident? (CGT on UK house sale)

It may not make sense, but I assure you it's what I've been told (immigration is never straight forward here, is it? )

In any case, we're already in Brisbane - halfway through my partner's 457 - so there's no point in applying for another visa at this point. As is, he'll be going for work sponsored PR shortly... BUT I will definitely contact DIAC about the medicare situation... As is, the Medicare team here have repeatedly advised that because I entered Oz de facto with a 457 holder, I'm considered a joint temporary resident. Here goes again...!
gunn1 is offline  
Old Jul 20th 2010, 5:16 am
  #8  
Social Grenade Thrower
 
paddyo's Avatar
 
Joined: Jan 2008
Location: South Coast, NSW
Posts: 3,625
paddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Originally Posted by gunn1
It may not make sense, but I assure you it's what I've been told (immigration is never straight forward here, is it? )

In any case, we're already in Brisbane - halfway through my partner's 457 - so there's no point in applying for another visa at this point. As is, he'll be going for work sponsored PR shortly... BUT I will definitely contact DIAC about the medicare situation... As is, the Medicare team here have repeatedly advised that because I entered Oz de facto with a 457 holder, I'm considered a joint temporary resident. Here goes again...!
Well, as I have learnt to my complete and utter frustration, those people who sit at the desks at Medicare and DIAC never say I DON'T KNOW, its always NO!!!!
paddyo is offline  
Old Jul 20th 2010, 5:36 am
  #9  
Forum Regular
Thread Starter
 
Joined: Sep 2009
Location: Brisbane, QLD
Posts: 34
gunn1 is an unknown quantity at this point
Angry Re: Tax for a temporary resident? (CGT on UK house sale)

Aaargggghhhh. OK, so according to DIAC, as a Kiwi I am definitely entitled to Medicare - irrespective of who I'm living with or what visa they're on - and now that I've called Medicare's central offices, they agree. 2 years later, but better late, right?

Now it turns out I've been paying $170 every month for completely unnecessary health insurance!! Reckon the good folks at Medicare will reimburse for their errors??

Thanks for the advice - looks like I get better information on here than from the official depts...
gunn1 is offline  
Old Jul 20th 2010, 8:58 am
  #10  
Victorian Evangelist
 
Buzzy--Bee's Avatar
 
Joined: Sep 2005
Location: Melbourne, by the beach, living the dream.
Posts: 7,704
Buzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond reputeBuzzy--Bee has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Originally Posted by gunn1
Aaargggghhhh. OK, so according to DIAC, as a Kiwi I am definitely entitled to Medicare - irrespective of who I'm living with or what visa they're on - and now that I've called Medicare's central offices, they agree. 2 years later, but better late, right?

Now it turns out I've been paying $170 every month for completely unnecessary health insurance!! Reckon the good folks at Medicare will reimburse for their errors??

Thanks for the advice - looks like I get better information on here than from the official depts...
We were on the NZ citizen SCV and TR461 before we got permanent residency - any questions about that visa ask away....

BB
Buzzy--Bee is offline  
Old Jul 20th 2010, 11:42 am
  #11  
Social Grenade Thrower
 
paddyo's Avatar
 
Joined: Jan 2008
Location: South Coast, NSW
Posts: 3,625
paddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond reputepaddyo has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Originally Posted by gunn1
Aaargggghhhh. OK, so according to DIAC, as a Kiwi I am definitely entitled to Medicare - irrespective of who I'm living with or what visa they're on - and now that I've called Medicare's central offices, they agree. 2 years later, but better late, right?

Now it turns out I've been paying $170 every month for completely unnecessary health insurance!! Reckon the good folks at Medicare will reimburse for their errors??

Thanks for the advice - looks like I get better information on here than from the official depts...
Hate to say we told you so but......................

But, if you have proof of their misdirection (letters/emails etc) then you may have grounds for recompense.
paddyo is offline  
Old Jul 21st 2010, 3:45 am
  #12  
JAJ
Retired
 
JAJ's Avatar
 
Joined: Apr 2004
Posts: 34,649
JAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Originally Posted by gunn1
It may not make sense, but I assure you it's what I've been told (immigration is never straight forward here, is it?

Told by whom? And why are you so confident you have been told correctly? (in fact, you have been given wrong information so should not believe it)

You've been told here that as an NZ citizen you can get a Special Category Visa on your own merits and if you are really interested, I can tell you where in the Migration Regulations you'll find all of that.

As a general guide, read, absorb, etc.
http://www.immi.gov.au/media/fact-sheets/17nz.htm

In any case, we're already in Brisbane - halfway through my partner's 457 - so there's no point in applying for another visa at this point. As is, he'll be going for work sponsored PR shortly... BUT I will definitely contact DIAC about the medicare situation... As is, the Medicare team here have repeatedly advised that because I entered Oz de facto with a 457 holder, I'm considered a joint temporary resident. Here goes again...!
It looks like an NZ citizen living in Australia is eligible for Medicare, irrespective of visa:
http://www.medicare.gov.au/public/mi...-australia.pdf

Bear in mind that eligibility for Medicare => liability to pay the ATO Medicare Levy plus surcharge, if applicable.
JAJ is offline  
Old Jul 21st 2010, 5:02 am
  #13  
Forum Regular
Thread Starter
 
Joined: Sep 2009
Location: Brisbane, QLD
Posts: 34
gunn1 is an unknown quantity at this point
Default Re: Tax for a temporary resident? (CGT on UK house sale)

JAJ, I was told by Medicare, as above, and in my newbie innocence, I thought they'd be in the best position to advise me on... medicare (either that or I'm congenitally stupid and / or gullible, your pick )

I expected to get medicare as a Kiwi, but the Medicare office told me (and a month later 'confirmed') that my partner's visa changed that. Wrong, as I now know (but the rules here are so labyrinthine that honestly anything's possible ). Never fear, I will have much less confidence in any apparently 'authoritative' advice in future...

Anyhoo, looks like I've got this mess cleared up now and I'm in touch with Go Matilda for official advice - thanks to everyone for your help and information
gunn1 is offline  
Old Jul 21st 2010, 5:22 am
  #14  
JAJ
Retired
 
JAJ's Avatar
 
Joined: Apr 2004
Posts: 34,649
JAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond repute
Default Re: Tax for a temporary resident? (CGT on UK house sale)

Originally Posted by gunn1
JAJ, I was told by Medicare, as above, and in my newbie innocence, I thought they'd be in the best position to advise me on... medicare (either that or I'm congenitally stupid and / or gullible, your pick
And did Medicare tell you you couldn't go and get a NZ citizen Special Category Visa on your own merits? Or did you just assume that?

A guideline for future reference is never ask a question of any government agency. Instead, go and find out the answer and if you must ask the question, only do so after you know the answer.
JAJ is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.