Speak with an Australian Expat Financial Adviser

Yes, but only on certain income. If you are a non-resident for Australian tax purposes, you generally only pay tax on income sourced in Australia, not your worldwide income. Examples of Australian-sourced income includes: • Employment income earned in Australia; • Rental income from Australian property; • Australian investment income (e.g. shares, interest are often subject to withholding tax). For non-residents, it is important to note: • Foreign income is generally not taxed in Australia if considered a non-resident for tax purposes; • Tax applies from the first dollar earned (there is no tax-free threshold); • The distinction between taxable Australian property (TAP) and non-taxable Australian property (non-TAP); • The Medicare levy does not apply to non-residents. In summary, a non-resident does pay tax in Australia, but only on Australian-sourced income.

Deemed disposal is a tax rule that applies when you cease being an Australian tax resident. It means you are treated as if you sold certain assets at their market value on the date you leave Australia, even though no actual sale has occurred. This can trigger a Capital Gains Tax (CGT) event based on any unrealised gains to that point. Key points include: • Applies when you become a non-resident for tax purposes; • You are “deemed” to dispose of assets at market value at departure; • Typically affects assets like shares, ETFs, managed funds and cryptocurrency; • Australian property (taxable Australian property) is generally excluded; • The application of deemed disposal is optional, you can choose to defer the CGT event until the asset is actually sold. In summary, deemed disposal is a rule that locks in capital gains or losses when you leave Australia, ensuring Australia taxes gains accrued while you were a resident.

Tax financial planning for Australians living overseas differs from domestic tax financial planning because it takes into account multiple tax systems, residency rules, and cross-border financial considerations. Rather than focusing on a single tax system, tax financial planning for Australians living overseas aims to optimise outcomes across multiple jurisdictions while ensuring compliance and flexibility as circumstances change. At Runway Wealth Management, our Australian Expat tax financial planning service is typically provided as part of a broader strategy such as: • Ensuring the correct amount of Australian withholding taxes are applied to investment portfolios in Australia; • Utilising the tax advantages of assets such as shares and ETFs, which are generally exempt from Australian CGT for Expats; • Optimising the CGT impact when selling Australian assets through Superannuation contribution strategies.

A Financial Adviser can play a critical role in helping Australian expats manage the complexities of cross-border financial planning. When living overseas, financial decisions are no longer confined to the Australian tax system and professional advice helps ensure your strategy remains efficient, compliant, and aligned with your long-term goals. As Financial Advisers to Australian Expats, Runway Wealth Management can assist with tax financial planning by: • Structuring compliant investments that are suitable for Australians living overseas; • Recommending strategies that improve tax efficiency; • Guiding decisions around contributions, withdrawals, ownership structures and capital gains tax implications for Australian assets such as superannuation, shares and property; • Integrating tax strategy with broader financial goals, including retirement planning, cash flow and wealth creation.