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Are you a Kiwi living in Australia and navigating the complexities of the tax system? Look no further – this guide is tailored just for you.
In this article, we’ll explore a unique opportunity that New Zealand citizens have when it comes to their tax status in Australia. Whether you’re a long-time resident or a newcomer, understanding these special considerations can potentially save you tens of thousands of dollars.
New Zealanders in Australia: A Unique Tax Status
As a New Zealander in Australia, you have access to special rights and considerations that aren’t extended to citizens of other nations. One of the most notable perks is the opportunity to hold a special category visa – the 444 visa. What sets this visa apart is its temporary nature but with no set time limit. If you meet specific conditions and hold the 444 visa while your spouse is also in Australia under a temporary status (neither permanent resident nor Australian citizen), you may be eligible to access temporary tax residency rules.
Temporary Tax Residency: A Kiwi Advantage
Being classified as a temporary tax resident in Australia offers significant advantages. Under this status, you are only liable to pay tax in Australia on income derived from Australian employment, income from the sale or disposal of Australian property, or employment income earned overseas.
What sets temporary tax residents apart is that they are not obligated to pay tax in Australia on foreign income – including New Zealand rental income – or on gains from the disposal of assets that are not Australian property.
This unique tax status can lead to substantial tax savings, as demonstrated by a recent client interaction where she was unaware of the potential tax benefits available to her as a temporary tax resident.
She had made a significant profit from shares and was prepared to pay a hefty 45% tax on her gains. After consulting with us and reviewing her current circumstances, we were able to ensure that she paid no tax in Australia on her share gains, saving her a considerable sum.
Empowering Kiwis in Australia
For Kiwis living in Australia, understanding the unique tax benefits and opportunities available to you is crucial. By leveraging the 444 visa and embracing your status as a temporary tax resident, you can legally minimise your tax liability and enjoy significant savings. It’s time to act and make the most of these special considerations.
Don’t hesitate to contact us and we’re here to help.
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