Capital gains on Australian assets
Foreign residents are taxed in Australia on income earned from their Australian investments.
For interest, unfranked dividends and royalties, tax is generally withheld in Australia at the time of payment. But if you receive rental income from Australian properties or capital gains from selling Australian assets, you must declare these amounts in an Australian tax return.
A capital gain is the difference between what it cost you to get an asset and what you got when you sold or otherwise disposed of it.
If you’re a foreign or temporary resident and you make a capital gain when you dispose of ‘taxable Australian property’, you may have to pay capital gains tax (CGT).
Taxable Australian property includes:
- a direct interest in real property, or a mining, quarrying or prospecting right to minerals, petroleum or quarry materials
- a CGT asset that you have used at any time in carrying on a business through a permanent establishment in Australia
- an indirect Australian real property interest. This is an interest in an entity, including a foreign entity, where:
- you and your associates hold 10% or more of it
- the value of your interest is principally attributable to Australian real property.
Taxable Australian property also includes an option or right over one of the above.
For more information on Etax, Mytax and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au
