Australia Property Tax Returns for Expats in the UK

ATO will expect a tax return if you’re an Australian citizen with an Australian tax file number, even if you no longer earn Australian income.

Expats must pay 32.5% of all Australian income up to $120,000 if they’re non-residents. Any income between $120,001 and $180,000 is taxed at 37%. Income above $180,001 is taxed at 45%. Expats and non-residents don’t have a tax-free threshold.

Please read our Australian Tax Rules for Expats page to learn more about Australian tax returns for expats.

Lodging tax returns in Australia is 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.

Different property taxes depend on whether you’re a tax resident or non-resident for tax purposes. Tax non-residents and foreign residents must pay a range of property taxes, including:

• Income tax
• Capital Gains Tax
• Stamp Duty
• Land Tax

Learn more about what taxes you are obliged to pay as non-residents on our Property Taxes for Non-Residents in Australia page.

Australia has agreements with many countries (40 in total) to protect Australian non-residents from double taxation and prevent tax evasion.

The agreements or treaties are commonly known as double tax agreements. The double tax agreement will affect various tax types in both countries. For example, the UK and Australia agreement focuses on different tax types to prevent double taxation and evasion in either jurisdiction.

Find out more on our Double Tax Agreement page.

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.

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.