Non-resident Australian Tax Implications


Capital Gains

When you become non-resident you can choose to notionally sell the shares and realise any capital gains tax payable.

Becoming non-resident capital gains example
Date Event Portfolio value
2005-10-20 (1) 2 x $10,000 worth of shares purchased value is $20,000
2006-10-22 (2) Moved overseas and became non-resident value is now 2 x $15,000 = $30,000
2007-10-30 (3) The portfolio was worth 2 x $20,000. Sold one parcel for $20,000. Kept the other. value is now $20,000
2008-10-30 (4) moved back to aus, became resident again value is now $25,000
2009-09-30 (5). sell the remaining parcel for $30,000 value is now $0

At (2), you have notionally sold the shares. This causes a capital gains tax event of $10,000 profit (value of portfolio (2) - (1)). Because they were held for over a year you can get the 50% deduction so the tax will only be on $5,000. Note that you haven't actually sold the shares, they are still in your name.

At (3), you make a profit from one parcel. I am guessing this is calculated using

$20,000 (3) - $15,000 (2)

= $5,000

The capital gain here is NOT declared in your AUS tax return.

At (5) a capital gain is realised. The amount is

$30,000 (5) - $25,000 (4)

= $5,000

The effect of this is when you were away between (2) and (4), the increase and gains were not counted towards your Australian tax.

Reference Capital gains tax (CGT) and going overseas

Medicare levy

No need to pay it.


Setup your aus accounts as non-resident, the banks will withhold interest on your behalf. This final tax rate is 10%.


Tell your broker you are non-resident, they should withhold tax from the dividend for you. I emailed etrade and told them to do it, and they have request a scan of a foreign proof of address.


Reporting non-resident withholding from interest and dividend payments at the ATO website.