Any Australians living in LOS who own a house should read this

[ghworker2010]

If your an ozzie living in Thailand and you own a house back home.... the nanny state government are drafting a new tax law where you will lose your CGT exemption if you sell after the 30th June 2019. 

 

http://www.smh.com.au/business/property/skewering-expats--youll-lose-the-capital-gains-tax-exemption-on-your-home-20170802-gxnk9f.html

 

I can't believe this government or maybe I can. They are so anti expats / or any Australians who want to live abroad. Maybe you have been paying taxes all your life in oz and want to retire in Thailand and change your tax status to be a non resident of oz at the ATO.... you will be stung by this new rule. 

 

Time to put your PPOR on the market? You have 1 yr. 

 

Australia has gone to the dogs. You couldn't pay me to live there. Screwed up govt run by old dinosaurs driven by revenue raising goals. 

[carlyai]

I don't know much about these things, but wouldn't they be trying to stop say Chinese investors buying up Australian properties, and then after a time selling them?
These people are only investing and driving up the house prices, then selling for big profits.


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[ghworker2010]

5 minutes ago, carlyai said:

I don't know much about these things, but wouldn't they be trying to stop say Chinese investors buying up Australian properties, and then after a time selling them?
These people are only investing and driving up the house prices, then selling for big profits.


Sent from my SM-J700F using Tapatalk
 

maybe, but the average joe blow living in Thailand will be hit by this harsh new revenue raising tax law:

 

The proposed law is far worse than I envisoned. Its a "drop dead tax" and needs careful consideration..

1. At the TIME OF SALE if the vendor is a non-resident for tax purposes they would be incapable of access to:
a. The main residence exemption for past property use
b. The main residence eabsence rule allowing up to 6 yaers of exemption and
c. The general 50% CGT concession. eg at present a valuation at 8 May 2012 is allowed to partially protect loss of grandfathered gains

[carlyai]

Why can't the expat become a resident again before they se'll the house?
I'm pretty sure they can't stop a nonresident from becoming a resident again.

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[Rancid]

Mind you if you want to cash in on the housing bubble while there is still time may not be a bad idea to do so now.

 

I recently sold my house at a ridiculous price and downsized to a nice waterfront townhouse with very low body corporate. Cashed me up nicely and I even prefer the new place.

 

The only thing you can be sure of is that future governments see expats as a small unimportant voting block so will happily go after them.

[ghworker2010]

5 minutes ago, carlyai said:

Why can't the expat become a resident again before they se'll the house?
I'm pretty sure they can't stop a nonresident from becoming a resident again.

Sent from my SM-J700F using Tapatalk
 

 

 

Yes this is a valid point. Maybe don't sell it in the next 12 months but hold it until after you return. In which case its still 100% taxable (under the existing post 8 May 2012 AU property CGT rules) but pro-rata recognition of prior residency SEEMS to be permitted but I cannot yet confirm this. The document isnt in the public domain (yet) and I want to see the full copy. The 2019 rule could also take it away !!)

[ghworker2010]

14 minutes ago, Rancid said:

Mind you if you want to cash in on the housing bubble while there is still time may not be a bad idea to do so now.

 

I recently sold my house at a ridiculous price and downsized to a nice waterfront townhouse with very low body corporate. Cashed me up nicely and I even prefer the new place.

 

The only thing you can be sure of is that future governments see expats as a small unimportant voting block so will happily go after them.

The last sentence is exactly right. But its extremely unfair to treat ozzies like this who have been paying taxes all their life. 

[steven100]

49 minutes ago, ghworker2010 said:

Australia has gone to the dogs. You couldn't pay me to live there.

This has happened over the last 10 yrs or so.

Sunday penalty rates squashed.

The highest energy prices in the world.

Food prices are higher than the US & EU

Petrol prices are at their peak.

The Queensland gov just quashed a 3 billion $ casino meca project for the GC.

Unemployment is rampent

Drugs are out of control in most VIC schools

Ice is rampent in most Queensland country towns.

 

Need I go on .....   there is more ..

[advancebooking]

30 minutes ago, steven100 said:

This has happened over the last 10 yrs or so.

Sunday penalty rates squashed.

The highest energy prices in the world.

Food prices are higher than the US & EU

Petrol prices are at their peak.

The Queensland gov just quashed a 3 billion $ casino meca project for the GC.

Unemployment is rampent

Drugs are out of control in most VIC schools

Ice is rampent in most Queensland country towns.

 

Need I go on .....   there is more ..

I couldnt agree more. Its incredibly expensive now.

 

Who would want to raise a child in a school in oz. There's a lot of violence and big egos with the teens now. Bullying is rampant. It continues to university colleges i.e. St Johns college at Sydney university has rampant bullying and is often written about in the Sydney morning herald.

 

Oz used to be good 15 to 20 yrs ago

[wildewillie89]

25 minutes ago, advancebooking said:

I couldnt agree more. Its incredibly expensive now.

 

Who would want to raise a child in a school in oz. There's a lot of violence and big egos with the teens now. Bullying is rampant. It continues to university colleges i.e. St Johns college at Sydney university has rampant bullying and is often written about in the Sydney morning herald.

 

Oz used to be good 15 to 20 yrs ago

I get the frustration with some things, but surely we are not comparing which country would be better to raise a child in terms of schooling between Australia and Thailand? Here in Thai you have to do some smart outside work, or pay a ridiculous amount to get anywhere near the standard of free education in Australia.  

The things you mentioned are same in every countries schooling systems. Australia's is of a such a high standard that if they do happen they actually make news. Look at Thai, competing institutions go around stabbing each other...

Edited August 3, 2017 by wildewillie89

[KittenKong]

Things may be bad for non-resident property owners in AUS but they are worse in the USA:

 

http://www.thisismoney.co.uk/money/experts/article-4742364/TONY-HETHERINGTON-tax-grab-not-fake-news.html

[topt]

4 hours ago, ghworker2010 said:

maybe, but the average joe blow living in Thailand will be hit by this harsh new revenue raising tax law:

 

The proposed law is far worse than I envisoned. Its a "drop dead tax" and needs careful consideration..

1. At the TIME OF SALE if the vendor is a non-resident for tax purposes they would be incapable of access to:
a. The main residence exemption for past property use
b. The main residence eabsence rule allowing up to 6 yaers of exemption and
c. The general 50% CGT concession. eg at present a valuation at 8 May 2012 is allowed to partially protect loss of grandfathered gains

So how much is CGT?

 

The UK introduced a similar tax last year but at least if you can prove valuation it is based on only the increase from April 2016 - and not what you originally paid for it.

[Chicken George]

same in the UK. Lost our capital gains allowances in 2015 plus our right to free health care. No matter if we still pay tax and NI. We can still claim up-to April 2015 capital gains when selling a property up to that date. 

[pest]

What if i keep a mortgage on it?

Its not mine its the banks really

[Salerno]

24 minutes ago, topt said:

So how much is CGT?

 

The UK introduced a similar tax last year but at least if you can prove valuation it is based on only the increase from April 2016 - and not what you originally paid for it.

CGT (for an individual) is the same as the tax rate in that particular year e.g. 32.4%, 37% or 45%.

 

Unlike the UK:

 

"Australian citizens who have owned their home for many years will be taxed on the full gain on the property from the time they bought it if they happen to be a non-resident for tax purposes when they sell."

[12DrinkMore]

16 minutes ago, pest said:

What if i keep a mortgage on it?

Its not mine its the banks really

 Nope.

 

The house is legally yours along with any capital gains and losses and tax liability.

 

The debt is a legal contract between you and the bank, but the bank may have the right to take posession if you do not pay up.

 

[georgemandm]

4 hours ago, steven100 said:

This has happened over the last 10 yrs or so.

Sunday penalty rates squashed.

The highest energy prices in the world.

Food prices are higher than the US & EU

Petrol prices are at their peak.

The Queensland gov just quashed a 3 billion $ casino meca project for the GC.

Unemployment is rampent

Drugs are out of control in most VIC schools

Ice is rampent in most Queensland country towns.

 

Need I go on .....   there is more ..

What you think thailand is better , no it's not  , it has all what you say and worst for thai people.

Edited August 3, 2017 by georgemandm
Add on

[shadowmaster1971]

5 hours ago, carlyai said:

Why can't the expat become a resident again before they se'll the house?
I'm pretty sure they can't stop a nonresident from becoming a resident again.

Sent from my SM-J700F using Tapatalk
 

Not as easy as it sounds.  Various federal, state and local authorities have different requirements as to what is deemed a resident in Australia.

 

Immigration has one set of rules as to a resident.  ATO says must be at least 6 months in Australia to be considered a tax resident.  The electoral authorities I believe state returning citizens after 1 month you are deemed a resident for election purposes.  Medicare says you are not resident in OZ upon return and only until your have resided for 6 months or mote.  I think for NSW drivers licence you a considered resident if in NSW for more than 3 months and must get a NSW drivers licence.

 

I was back in Sydney 2012/2013 for an 18 month contract for work.  My status was upon return was of a citizen of australia , only visiting australia not returning permanently under immigration rules.  For ATO I was non-resident and resident for parts of the tax year.  I was non resident for medicare, thus did not have to pay medicare for a year and was exempt for the medicare surcharge levy.  After 3 months back in Sydney I was deemed a resident by RTA and should have gotten a NSW driver licence.  After a Couple of months i received notice form the electoral commission that I was eligible to vote again because I was a resident.

 

As I travelled extensively i would enter and exit australia as a visitor to australia, particularly as my principal place of residence was Hong Kong even though I was living in Sydney & Brisbane.

 

So there is no continuity as to what is and isn't a resident depend on who you ask in Oz!

[georgemandm]

4 hours ago, wildewillie89 said:

I get the frustration with some things, but surely we are not comparing which country would be better to raise a child in terms of schooling between Australia and Thailand? Here in Thai you have to do some smart outside work, or pay a ridiculous amount to get anywhere near the standard of free education in Australia.  

The things you mentioned are same in every countries schooling systems. Australia's is of a such a high standard that if they do happen they actually make news. Look at Thai, competing institutions go around stabbing each other...

I could not agree with you more .

Australia has a great  education system . The op has no idea how great it is , the schools in Australia.

I know first hand how great it is , my daughter who has a leaning problem gets great help from the school and government funding to pay for her  aid.

You would no hop of getting that help in thailand , and 40 % of thai kids can't read and write, I feel so sorry for them .

And if you like me trying to lean to read and write thai , you would understand how hard it is , my thai partner tells me it is very hard trying to lean thai reading and writing thai .

 

Edited August 3, 2017 by georgemandm
Add on

[psyvolt]

5 hours ago, steven100 said:

Sunday penalty rates squashed.

The highest energy prices in the world.

Food prices are higher than the US & EU

Petrol prices are at their peak.

The Queensland gov just quashed a 3 billion $ casino meca project for the GC.

Unemployment is rampent

Drugs are out of control in most VIC schools

Ice is rampent in most Queensland country towns.

Hyperbole much...

 

Sunday rates were only cut for a select few industries (which I still don't agree with, but it wasnt a cut across the boards)

Energy costs are not the highest in the world, far from it, and neither are fuel costs. Where did you get this rubbish from???

Food prices are high, but again not anywhere near the highest in the world and comparing it to two areas are silly, but then again - you also fail to mentiom Australians have one of the highest weekly wage earnings.

Good that the gov finally put the GC spit issue to bed. Dragged on far too long.

Unemployment rampant- compared to what? It's actually low (5%). So again, your whinge has no basis. Which also goes for your drug rant. 

Your whole post is nothing more then alikely baseless pathetic rant.

Edited August 3, 2017 by psyvolt

[impulse]

6 hours ago, ghworker2010 said:

I can't believe this government or maybe I can. They are so anti expats / or any Australians who want to live abroad. Maybe you have been paying taxes all your life in oz and want to retire in Thailand and change your tax status to be a non resident of oz at the ATO.... you will be stung by this new rule. 

 

A dollar spent in Oz probably circulates through the Oz economy 2 or 3 times, getting spent and re-spent, taxed each time.

 

A dollar spent in Thailand is lost to the OZ economy.

 

Another way to look at it is that you've made your nugget in Oz, using Oz based resources and your Oz provided education, and now you're taking that Oz made money and spending it elsewhere.  Of course, it looks different to an expat than it does to a remainer...

 

Not to say it doesn't suck (for someone) when they change the rules.

[mfd101]

As always (and everywhere in the world, I guess), the people who complain about the high level of taxes and the high cost of living are the same people who are always expecting and demanding ever higher levels of government services and interventions to improve the world ...

[wildewillie89]

7 minutes ago, georgemandm said:

I could not agree with you more .

Australia has a great  education system . The op has no idea how great it is , the school in Australia.

I know first hand how great it is , my daughter who has a leaning problem gets great help from the school and government funding to pay for her  aid.

 

I think it was a different user, not the OP, but either way it seems the thread has turned into uninformed Aussie bashing lol.

Have one kid at my work here in Thai who is pretty switched on sometimes. Got told when I started she was a 'mute and retarded'. I found it amazing seeing as she runs up to say hello to me everyday. She obviously has some problems, locks herself in the cupboards sometimes, but it is clear the school never gave her a chance (and no way any funding). 

 Tested her the other day with some vocab and she was middle range in the class. Can only dream how well she would do in the Australian school system with some help, rather than be constantly ignored/given up on here. 

[johnmcc6]

I spent 35 years in OZ and the last 15 saw a downward, nanny state pc creep that has wrecked the place. When I look at the conga line of  useless self serving politicians over that time I cringe. It used to heaven on a stick. You could go to pub in Newtown and drink and laugh with all the migrants from around the world. Take the piss and share the shouts. Now Newtown if full of greens and snowflakes. Prices only fit only  for the elite. Property tax, car rego and rents through the roof.  The  true Aussie battler has been beaten to a pulp. I still love my country. Maybe when the voters get a gut full they will find a true leader to make it right again. In the meanwhile I like it here and intend to stay. Sorry for the guys who rely on rental income and C G tax to survive.

[johnmcc6]

6 minutes ago, mfd101 said:

As always (and everywhere in the world, I guess), the people who complain about the high level of taxes and the high cost of living are the same people who are always expecting and demanding ever higher levels of government services and interventions to improve the world ...

I complain and earned every zack I ever had.

[georgemandm]

9 minutes ago, psyvolt said:

Hyperbole much...

 

Sunday rates were only cut for a select few industries (which I still don't agree with, but it wasnt a cut across the boards)

Energy costs are not the highest in the world, far from it, and neither are fuel costs. Where did you get this rubbish from???

Food prices are high, but again not anywhere near the highest in the world and comparing it to two areas are silly, but then again - you also fail to mentiom Australians have one of the highest weekly wage earnings.

Good that the gov finally put the GC spit issue to bed. Dragged on far too long.

Unemployment rampant- compared to what? It's actually low (5%). So again, your whinge has no basis. Which also goes for your drug rant. 

Your whole post is nothing more then alikely baseless pathetic rant.

Mate you are so right .

I come and go to thailand and I find thailand is so  expensive  for the thai people it is a joke .

I can buy  pork leg  for $7 a kgs in Australia , thailand 150 thai bht a kgs is $6 , but I don't get 300 thai bht a day pay , I get $150 a day pay . 

I don't have to pay half my days pay for one kgs of pork .

[InMyShadow]

Australia leads the world in Nanny status.

 

look at the disabled pensioners who are not allowed to spend more the 2 weeks outside of oz before they are cut off! really?  there view is if you can fly your not to sick to work. Ever seen people in wheel chairs flying..amazing Australia ..it can be done!

 

thialand is less of a nanny state even under junta unless you like a drink on Buddhist days

Edited August 3, 2017 by InMyShadow

[pest]

1 hour ago, 12DrinkMore said:

 Nope.

 

The house is legally yours along with any capital gains and losses and tax liability.

 

The debt is a legal contract between you and the bank, but the bank may have the right to take posession if you do not pay up.

 

cheers mate

[tomwct]

the Nanny State getting Bigger!

[mfd101]

7 minutes ago, johnmcc6 said:

I complain and earned every zack I ever had.

Fine. My point is that politicians everywhere are confronted daily with people who want more and more out of government services and want to pay less and less in tax. Theoretically it could be done if government administration could be made more efficient (ie sack thousands upon thousands of public servants, which of course costs huge amounts of money to do) but no politicians will ever do that because the voters (of whom the public servants are a large slab) will punish them. I was a Defence bureaucrat and I know of what I speak.

 

The voters get what they vote for.