Shares, ETFs and Managed Funds: Investment Options for Australian Expats

For Australians living and working overseas, investing can feel more complex than it needs to be. Different tax systems, currencies, and residency rules often lead expats to assume they must invest offshore to remain tax effective or globally diversified.

In reality, that’s not the case.

There is a wide range of investment options for Australian Expats available through Australian-domiciled shares, ETFs and managed funds that can be both tax-effective and well-suited to an expat lifestyle. With the right structure and advice, Australian expats can build diversified portfolios without needing to rely on complex offshore investment structures.

Understanding investment options for Australian Expats

Australian expats typically fall into one of two broad categories for tax purposes:

• Australian tax residents living temporarily overseas; or

• Non-residents for Australian tax purposes

Your residency status affects how your investments are taxed, particularly in relation to income, capital gains, and withholding tax. However, regardless of residency status, there are still many high-quality investment options for Australian Expats available within the Australian investment universe.

Importantly, investing “offshore” does not automatically make an investment more tax effective. In some cases, offshore investments can introduce unnecessary tax complexity, higher fees, and penalties for early access.

Shares as an investment option for Australian Expats

Direct shares remain one of the most straightforward and flexible investment options for Australian Expats.

Australian Expats can generally continue to hold Australian shares, and in many cases, acquire new holdings through Australian platforms. Shares provide:

• Transparency and control

• Access to dividend income

• Exposure to a wide range of industries

• Liquidity and ease of management

  
  

For non-resident Australian expats, franked dividends may still be attractive, although franking credits are typically not refundable. Capital gains tax treatment in Australia will depend on residency status and the type of asset held, making advice critical before buying or selling.

Australian shares can also provide indirect global exposure, as many ASX-listed companies earn substantial revenue overseas.

ETFs: flexible and globally diversified investment options for Australian Expats

Exchange Traded Funds (ETFs) have become one of the most popular investment options for Australian Expats, and for good reason.

Australian-domiciled ETFs can provide:

• Exposure to global share markets

• Access to specific regions, sectors, or themes

• Currency-hedged and unhedged options

• Low-cost diversification

Crucially, an Australian expat does not need to invest in offshore-domiciled ETFs to gain international exposure. Many Australian-domiciled ETFs invest in global markets while keeping the tax reporting and regulatory framework familiar and manageable.

For expats living in countries with complex tax systems, Australian-domiciled ETFs can significantly reduce administrative burden compared to offshore funds.

Managed funds as investment options for Australian Expats

Managed funds remain another strong option within the range of investment options for Australian Expats, particularly for those who prefer professional portfolio management.

Australian managed funds can offer:

• Active investment management

• Exposure to Australian and international assets

• Access to specialist strategies

• Regular income distributions

For expats who want a more hands-off approach, managed funds can be useful, provided the tax implications are well understood. Distribution timing, capital gains, and foreign income exposure should be reviewed carefully, especially when living in jurisdictions with differing tax years or reporting requirements.

You don’t need offshore investments to be tax effective

One of the most common misconceptions among expats is that offshore investments are automatically more tax-efficient.

In practice:

• Offshore structures can trigger additional reporting obligations

• Foreign tax laws may apply unexpectedly

• Double taxation risks can arise if investments are poorly structured

• Costs and complexity often outweigh perceived benefits

Many Australian-domiciled shares, ETFs and managed funds are already designed to be tax-efficient and globally diversified. For many expats, these Australian offerings are entirely suitable and often preferable.

Choosing the right investment options for Australian Expats is less about geography and more about structure, residency status, and long-term strategy.

Key considerations when choosing investment options for Australian Expats

Before selecting investments, Australian expats should consider:

• Tax residency status and potential future changes

• Host country tax rules and how foreign income is treated

• Currency exposure and long-term plans to return to Australia

• Access to Australian platforms and providers

• Estate planning and beneficiary rules across jurisdictions

  
  

What works well for one expat may be inappropriate for another, even if they live in the same country.

Getting professional advice matters

While there are many excellent investment options for Australian Expats, the way investments are selected, structured, and managed makes a significant difference to long-term outcomes.

A Financial Adviser experienced in working with Australian expats can help:

• Avoid unnecessary offshore complexity

• Ensure compliance with Australian and foreign tax rules

• Build globally diversified portfolios using Australian investments

• Adapt strategies as residency status changes

Conclusion

Australian Expats are not limited in their investment choices simply because they live overseas. Shares, ETFs and managed funds available in Australia continue to provide flexible, tax-effective, and globally diversified investment options for Australian Expats.

The key takeaway is simple: you don’t need offshore investments to invest internationally or tax effectively. In many cases, Australian-domiciled investments are not only sufficient, but preferable.

With the right advice and a clear understanding of your personal circumstances, Australian Expats can invest confidently, no matter where in the world they call home.

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 link below:

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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.