My family will be resident in Australia, though likely not citizens, by the time we receive returns on our investment. Will we be liable for taxes on our returns to pay Australian taxes?
Answers
Non-residents are subject to Australian tax on income from sources in Australia and capital gains tax from the disposal of taxable Australian real estate property. Non-residents benefit from being subject to withholding tax rather than income tax on Australian sourced interest income at a rate of 10%. Applicants are encouraged to consult with an International Taxation Accountant as part of the investment process as careful tax planning is key to minimising tax on SIV investments.
All residents are taxed on the income they generate. How you will be taxed will require a tax agent to properly advise you and in accordance with: (1) the days you live in Australia, (2), the nature of the investment and returns and (3) any changes to tax law during the period of assessment. Of course, tax rules are complex and may not be limited to the above indicators.
The determining factor is residence, so you will be liable for Australian taxation with a rate dependent on your income.
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