Aussies property rights OS

Posted by curios (205 days ago)

As an Aussie living and working overseas for quite some time do I still get rental income taxed? If so how much, and is there such a thing as "waiving" this tax?

(I am based in Hong Kong)

Posted by Saikunga (203 days ago)

Yes you still have any income derived in Australia taxed - you will have no tax free threshold, and pay 30% in every dollar of profit. (this will be determined by expenses, costs, interest payments etc - you will usually end up with not much profit.) Suggestions to reduce tax or eliminate it is to purchase a fairly new property, pay for a quantity surveyor to go through the property (about $600 - 700 dollars) to create a depreciation schedule. This is amazing how it reduces the tax for MANY years - usually pays for itself after one year.

Negative gearing is what many suggest to reduce tax - I personally prefer to make a profit, and eliminate that through depreciation schedules. a paper loss.

If the property is in NSW there is no way of reducing property tax - that is a nasty tax - but it is tax deductable in profits tax. It is also part of the reason many people in Sydney/ NSW are getting out of property as an investment option - and creating a rental squeeze.

(I am based in Hong Kong)

Posted by curios (203 days ago)

the property will be in Thailand for investment purposes only. If I am not a resident in Australia for tax purposes, how does the rental income get assessed?

(I am based in Hong Kong)

Posted by Saikunga (202 days ago)

You didn't mention the property was in Thailand - I assumed the property was in Australia because your question asked about Australian Tax - the answer is NO - you will not get taxed on any profit from the property in Thailand while you are living outside of Australia. Once you are in Australia living, then it will be a different thing I believe.

(I am based in Hong Kong)