Wealth Management for Australian Expats
Are you on track to achieve your financial goals?
Wealth Management for Australian Expats is a holistic advisory service that aims to propel you towards achieving your financial goals. It involves a consultative process to understand your complete financial position including:
Assessing your short, medium and long-term objectives
Reviewing your assets, liabilities and savings capacity
Analysing your risk profile, investment timeframe, income level and tax residency
Formulating tailored investment strategies and solutions to maximise your wealth
Utilising the opportunities available to non-residents for tax purposes
How we can help you reach your financial goals as an Australian Expat
For Australian Expats, the investment landscape and options available are different compared to someone residing in Australia. When an Australian has been living overseas for a prolonged period, their tax residency is generally updated to a foreign or non-resident tax status. This carries a new set of complex tax rules that must be carefully navigated. Without guidance from an experienced adviser, Australian Expats risk making costly investment and taxation errors that often only become apparent later.
Runway Wealth Management is a specialist in providing Wealth Management for Australian Expats worldwide. We offer customised investment solutions that aim to maximise your wealth and provide you with peace of mind whilst you live abroad. Some our solutions include:
INVESTMENT
REVIEW
We can review existing investments you hold and offer advice to align them to your risk profile and investment objectives. We can also advise as to whether your existing investments may have any adverse consequences due to your tax residency status or overseas location.
RISK PROFILING & ASSET ALLOCATION
We take an in-depth approach to assessing your risk profile for investment purposes, in consultation with you. We can then advise on the appropriate asset class allocations for your portfolio such as Growth assets (e.g. shares) and Defensive assets (e.g. bonds) to align with your risk profile.
PORTFOLIO CONSTRUCTION & ASSET MANAGEMENT
We can construct a well-diversified investment portfolio that complies with your residency status. Our tailored portfolios may consist of investments in direct shares, Exchanged-Traded Funds (ETFs), Managed funds, and Bonds. We also offer ongoing support to manage your tailored portfolio, which includes strategic changes throughout the year.
STOCK-BASED COMPENSATION ADVICE
We can review your stock and equity-based compensation plans such as Restricted Stock Units (RSUs), Stock Options and Stock Purchase plans and offer strategic advice on managing this on an ongoing basis.
INVESTMENT BEHAVIOURAL COACHING & GUIDANCE
We offer ongoing investment guidance as part of our asset management service. This can prove invaluable in times of market volatility and change. Our asset management service helps you navigate your investment journey with the confidence to remain resilient and focused on your long-term investment goals.
Can Australians living overseas invest in shares?
Yes, you can invest in shares as an Australian living overseas. There is no rule stopping Australian Expats from owning or buying shares. However, your tax residency status, ability to access brokerage platforms and host country rules will impact how you go about investing in shares as an Australian living overseas. Australian Expats should first understand whether they are classified as a resident or a non-resident for Australian tax purposes. The tax treatment of dividends and capital gains differs for non-residents. Further, non-residents do not receive franking credit refunds. Australian Expats should use a brokerage platform or investment account provider that caters to Australians living overseas. Australian Expats should seek an investment platform that supports their non-resident tax status in Australia and their overseas country of residence and does not have any restrictions on foreign investors. While non-residents for Australian tax purposes can usually invest in shares without being subject to capital gains tax in Australia, you should understand any tax implication in your host country.
Should an Australian living overseas invest offshore?
In most cases, it’s unnecessary for Australian Expats to invest offshore. Investing in shares as non-resident for Australian tax purposes is usually tax-efficient, as non-residents are exempt from Australian capital gains tax (CGT) (except certain assets) and subject to low withholding tax on investment income. Offshore structures rarely add meaningful benefit. They can introduce complexity, including multi-country tax reporting, higher administration and reduced transparency. In contrast, Australian-based platforms offer strong regulation, investor protections, and simpler reporting. Importantly, you can still achieve global diversification through Australian platforms, with access to international shares, ETFs, and managed funds without the added risk and complexity of investing offshore.
Restricted Stock Units (RSUs), Stock Options and ESSP - How can Australian Expats manage equity-based compensation?
Australian expats can manage equity-based compensation (RSUs, stock options, and ESPPs) by focusing on timing tax events, diversification, and strategic decision-making across each structure. Australian Expats with equity-based compensation should understand how each structure works and is taxed. When receiving equity-based compensation as an Australian Expat, there is a risk of overexposure to your employer’s stock and therefore, Australian Expats require a structured strategy to avoid concentration risk and to diversify.
How can a Financial Adviser help an Australian Expat with wealth management?
A Financial Adviser can help an Australian Expat with wealth management by: • Reviewing assets, liabilities and savings to build a coordinated wealth strategy; • Choosing compliant investment platforms that are suitable for non-residents; • Developing tailored investment portfolios with diversified asset allocations that are aligned to goals and risk profiles, while ensuring compliance with tax residency status; • Identifying opportunities and risks due to residency status and living overseas; • Reviewing and optimising existing investments to assess whether they are suitable for non-residents and recommend adjustments to better align with objectives; • Making strategic adjustments to investments as market or circumstances change; • Provide ongoing guidance during market movements to support long-term goals; • Strategise RSUs and equity compensation and manage currency movements.
Tips to consider for Australian Expat Wealth Management
Investing without Capital Gains Tax
Australian Expats who are non-residents for tax purposes may be able to invest in Australian Shares and other listed investments without accruing a Capital Gains Tax (CGT) liability with the Australian Tax Office (ATO). This is because Australian Shares and other listed investments are considered non-taxable Australian real property (non-TARP) and are therefore treated differently by the ATO. Accordingly, this offers an effective way to build wealth as an Australian Expat. However, care should be taken in understanding any CGT in your overseas location.
Taxation of Dividends as an Expat
Dividends from shares paid to a non-resident Australian Expat are subject to minimal to no income tax payable to the ATO. This is because shares are generally considered non-taxable Australian real property (non-TARP) and are subject to ATO withholding tax rules. Dividends received from Australian shares can be subject to a flat rate of withholding tax between 15% and 30% of the dividend, depending on your location overseas. However, where there is a franking (tax) credit attached to the dividend, this can be used to offset the entire amount of withholding tax. Dividends paid from international shares are considered conduit foreign income by the ATO. For this reason, these dividends are not assessable income and are exempt from taxation in Australia.
Deemed disposal of shares and other listed investments
Expats may elect to apply the ATO’s deemed disposal rules (similar to an “exit tax”) to assets such as shares and other listed investments when they depart Australia. The deemed disposal rules operate so that an Expat is “deemed” to have disposed of certain assets at their market value as at date of departure. It is important to remember that the use of the deemed disposal rules is voluntary and there are various pros and cons to consider (depending on your circumstances) when deciding to apply these rules. Further, these rules only apply to assets considered Non-Taxable Australian Property (Non-TAP). Therefore, they do not extend to real estate assets.
Choosing a compatible investment platform
Many popular share brokerage services in Australia generally prohibit access for Australian Expats because of their overseas residency status. There is also the issue of finding a platform that correctly withholds tax under the foreign resident withholding tax (WHT) rules. If tax is not withheld under the WHT rules, you may be required to file a tax return in Australia to ensure compliance with the ATO. Accordingly, it is crucial to an expat’s wealth management strategy that they choose to invest with a compatible platform that is not adverse to their overseas location.
General Advice Disclaimer
The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.