Frequently Asked Questions by Australian Expats during an Initial Consult with a Financial Adviser

Living and working overseas can open exciting doors for Australian expats, but it also adds complexity when it comes to managing finances and tax obligations. At the heart of this complexity are several recurring concerns we find arise during our initial conversations with Australian Expats. Here are five of the most frequently asked questions by Australian expats during the initial consult with a Financial Adviser, and what you need to know about each one.

1. What are the tax consequences of bringing money back into Australia?

One of the most frequently asked questions by Australian expats relates to transferring money back home. Many expats worry that sending foreign income or savings back to Australia will trigger tax obligations. The truth depends largely on your residency status for tax purposes.

If you’re classified as a non-resident for Australian tax purposes, foreign income is generally not taxed in Australia and can be brought back to Australia without any tax implications. However, if you’re a resident or if you become one again when returning, the Australian Taxation Office (ATO) may treat foreign income and gains as assessable. Timing and the source of funds matter, especially when it comes to capital gains or large lump sum transfers.

Speaking with a Financial Adviser can help you structure these transfers efficiently and avoid unnecessary tax implications.

2. Do I have to lodge an Australian tax return while living overseas?

This is another of the most frequently asked questions by Australian expats, and the answer depends on your specific circumstances. If you're earning only foreign income and are considered a non-resident for tax purposes, you may not be required to lodge a tax return in Australia.

However, if you still have Australian-sourced income, such as rental income or capital gains, you will likely need to lodge a return. If you have an outstanding student debt, such as a HELP loan (previously HECS), you may need to report your worldwide income to the ATO as well.

It’s also worth noting that different reporting rules apply to residents and non-residents, and failing to lodge when required can lead to penalties. Confirming your residency status and understanding your obligations are crucial steps early in your expat journey.

3. Can I still contribute to my superannuation fund while living overseas?

Yes, but it’s not always straightforward. This is one of the frequently asked questions by Australian expats, especially those thinking about long-term retirement planning. While you can technically contribute to your Australian superannuation fund while overseas, there are rules and limits to consider.

As an expat, your Australian employer contributions usually stop once you start working for an overseas employer. For this reason, it may be wise to consider topping up your super while you're abroad. Some expats choose to make after-tax contributions as part of a broader wealth-building strategy. The right approach will depend on your income level and long-term plans for retirement in Australia or elsewhere.

If you have a Self-Managed Super Fund (SMSF) or you're a US tax resident, be especially cautious, as specific regulations apply in those cases.

4. Can I invest in Australian shares or property while living overseas?

Investing back home is a common consideration for expats, and one of the most frequently asked questions by Australian expats is whether they can still access local investment opportunities. The short answer is yes, Australians living overseas can still invest in shares, managed funds, and property.

However, there are key differences in how investment income is taxed if you are a non-resident. For example, franked dividends may lose some of their usual tax benefits, and property investments may no longer receive concessional capital gains tax treatment.

Additionally, if you're planning to invest in property, consider land tax obligations, and how your borrowing power may be affected if your income is earned offshore. A Financial Adviser can help you make informed choices that align with your overall investment strategy and tax situation.

5. What are the tax implications of owning property in Australia as an expat?

This is easily one of the most frequently asked questions by Australian expats who continue to hold real estate in Australia. Whether it’s your former family home or an investment property, owning property while living overseas comes with specific tax implications.

Non-residents are generally not eligible for the main residence exemption for capital gains tax (CGT), even if the property was once their principal place of residence. That means selling your property while overseas could trigger a substantial tax bill. Rental income also remains taxable in Australia and must be reported annually, regardless of where you live. Plus, you may face land tax in some states, depending on the land value of your property and its location.

Understanding these tax obligations is critical for long-term planning. Many expats consider whether to keep or sell property based on their future return plans and the ongoing costs of ownership.

Conclusion

Navigating your finances as an Australian expat can be complex, but asking the right questions during your initial consult with a Financial Adviser is a strong first step. The most frequently asked questions by Australian expats often centre around tax, superannuation, property, and investment, all of which can be managed strategically with the right advice.

Getting clear on your tax residency, knowing your obligations both in Australia and abroad, and planning your financial future early on can save you significant time, money, and stress.

Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.

If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the below link:

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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.