Property Tax Return Australia for Expats in Singapore

Australian tax rules for expats are pretty straightforward, whether in Australia or overseas.

You will need a unique Tax File Number (TFN). The Australian Tax Office assigns all Aussie taxpayers a TFN and a MyGov account.

You may need to update the settings to allow you to complete your tax return from overseas. You can submit your tax return online through myTax, the fastest and easiest way to pay taxes.

According to the Australian tax rules for expats, you will require the following:

1. Your bank account details
2. Proof of net taxable income
3. Proof of expenses and deductions
4. Evidence of private health funds (if you’re required to pay the Medicare Levy Surcharge)

You can find out more on our How to Lodge your Australian Tax Return as an Expat page.

The ATO will consider you an Australian resident for tax purposes living overseas if you are an Australian Citizen with a Tax File Number.

Most Australians, including expats and foreign residents, who earn an Australian income must file a tax return. According to the ATO, you don’t need to complete a tax return if you are:

• earning less than the tax-free threshold as an Australian tax resident
• a foreign resident and didn’t earn any Australian income
• a working holidaymaker earning less than $45,001

You can find more information on our Australian Tax Returns for Expat page.

In Australia, non-resident tax applies to those who live and work abroad without intending to return to oz. Non-tax residents only need to lodge tax returns for income earned in Australia. It’s also a little more challenging to prove that you’re a non-resident for tax purposes.

The Australian non-resident tax rates are higher than tax residents, so it’s best to speak to a tax advisor to know what offsets and exemptions are available.

You can check our Resident Vs Non-Resident Tax in Australia page for more information.

Aside from paying tax on worldwide income or not, there are quite a few differences between Australian tax residents and non-residents.

These differences include:

• Tax rates: Non-residents pay a higher tax rate on their taxable income than Australian residents. Plus, there is no free-tax threshold for non-residents; they pay 32.5% on all Australian-sourced income from $0 to $120,000.
• Medicare Levy: Non-residents do not have to pay the Medicare Levy (2%) or the Medicare Levy Surcharge. All residents pay the Medicare Levy. High-income earners pay an additional surcharge of 1 – 1.5%.
• Low and middle-income tax offsets: The low-income and middle-income tax offsets assist Australian tax residents with lower salaries. Non-residents cannot apply these offsets to their taxable income.
• Deductions: Australian non-residents and residents can deduct all income-related expenses from their taxable income.
• Principal residence capital gains tax exemption: Only Australian tax residents qualify for the main residence exemption on their capital gains tax. Non-residents must pay the entire capital gains tax amount.

Australia practices a progressive tax rate system which means your marginal tax rate will depend on your taxable income each financial year. The higher your income, the higher the marginal rates you will need to pay. This applies to non-residents as well.

For example, if you earn $100,000 in a financial year, you will pay 32.5c for each dollar you earn based on tax rates for foreign residents.

You can check out the tax rates for non-residents on our Australian expats page.

As a property investor or an Australia-based property owner, there are certain tax deductions you can apply for as an Aussie expat.

There are several expenses and deductions you can claim, including deductions for:

• rental properties
• certain furniture and assets
• utilities and internet connections
• landline costs
• electricity costs, and so on.

You can read our Tax Deductibles for Property Owners in Australia page to learn more.

You must work out your capital gain or loss for each asset you sell during a financial year, such as property or shares. You pay taxes on your net capital gains, i.e. your capital gains, less your capital losses and discounts you are entitled to on your gains.

Non-residents are subject to capital gains tax only on taxable Australian property. Assets you acquired before 20 September 1985 are not subject to CGT.

You may also be eligible for the 50% CGT discount if you acquired assets after 8 May 2012.