[bartbaker33]

Hi all,

first time poster (and hopefully frequent).

I am moving to NZ from Sydney in about a month for 3.5 years, and will be renting out my home whilst away.

I have been able to establish some basics in terms of the tax situation. If your experience is different to this then feel free to offer your view.

1. As my home is being rented out for less than 6 years, I will not have to pay Capital Gains tax on it, if I sell it in the future.
2. I still can negative gear my home even though I am now a non-resdinet of Australia for tax purposes, i.e off set my rent against any mortgage interest and expsnses, so that I will not be liable for any tax, as I will be making a loss.
3. As my only Australian income will now be my rent, I CAN'T claim any tax relief on my loss, as there is no other income to offset it against.
4. I can make extra repqyments into my Australian home loan from my NZ after-tax income with no extra tax, as I've alreday been taxed in NZ.

Would appreciate any advice from anyone who has done the same

Many thanks

[dilanium]

I have no idea the answers to your questions, but I wanted to say hello and welcome to the forums!

[bartbaker33]

Thanks dilanium.

I actually just got off the phone from teh Australian Tax office and they confirmed everything I've posted, so all is sweet.

[mish&al]

Where are you from in Sydney? I am a Sydneysider married to a Christchurch boy.

We are not in christchurch yet. Another year to go.:cheers

Mich

[bartbaker33]

Mich, I'm in the Sutherland Shire. I'm moving to Wellington

[mish&al]

Lucky you, I like it down that way...

I live in Horningsea park, on your way out of liverpool towards west hoxton (blerggh)

I grew up in Lane cove.

My hubby's from Christchurch, probably heading there.

Good luck for your move.:cheers

[vitalogy]

4. I can make extra repqyments into my Australian home loan from my NZ after-tax income with no extra tax, as I've alreday been taxed in NZ.


Keep in mind that the Aus and NZ banking systems are completely seperate, so transferral of funds needs to be done via telegraphic transfer, which (at least at Westpac) costs $25 a throw. Therefore it's a good idea to transfer fewer larger lump sums rather than frequent smaller amounts.

All the best.

Alistair

[JandM]

Hello and welcome.:)