As an Expat, Are You Sure You're Ready to Move Back to Oz?
Have you spent some years working overseas, as you enjoyed a different way of life with your family? Many Australians have been down this road before you, perhaps because their job asked them to do so or they simply fancied a change of scenery with some tax benefits tagged on. Yet, all good things come to an end as the saying goes, and you may be planning to return to Australia to start another phase of your life. If so, you will need to plan carefully and well in advance if you can, as you take advantage of any opportunities and make sure that you don't pay too much through mistakes. What do you need to know, as a repatriating expat?
Hello, Stranger
Firstly, understand that nothing stands still and the way of life in Australia may have changed quite a bit since you moved abroad. In particular, the cost of living may have increased, and some new laws may have been introduced to govern finances, taxation and so on. Ensure that you are fully familiar with any of these modifications so that you don't get any nasty surprises when you land on home shores.
Strategic Moves
You may be able to gain some tax advantages by generating paper losses and other solutions if you decide to upgrade your family home when you return to Australia. This may be part of a plan to reset your overall financial structure and tax liabilities and is something that you should consider carefully with your advisor.
Bringing Back Cash
You may have accumulated a nice nest egg when working in foreign climes, perhaps due to a favourable tax regime there. You may be worried about bringing this money back into Australia as you think that it will automatically become vulnerable to taxation, but this is not the case. If the amount is really substantial, however, and you will be using it to generate a good sum of interest, then this will certainly be taxed, and you will need to declare this every year on your return.
Telling the Government
You will also need to inform the government of your plan to return home and will usually need to change your tax status from non-resident to resident. This new way of life may take some re-acclimatising and this is another good reason for you to make arrangements well in advance.
Expert on Your Side
Always ensure that you talk with a tax expert who is familiar with expat matters so they can warn you of any particular challenges and make sure that you are as ready as possible. Reach out to these professionals for tax advice.