Categories: Expat Life

Top financial tips for expats repatriating back to Australia

With an established network of offices around the globe, Australasian Taxation Services (ATS), continues to dominate as the leading Australian expatriate and property tax firm, having serviced thousands of international and Australian based clients.

ATS are now officially launching our unique Tax Planning Software Modelling for our clients to get a complete and understandable picture of their tax implications when living in Australia. This incredible software allows us to review your entire financial position and provide various scenarios for you to consider in order to legally manage your Australian tax affairs.

Here are ATS’s top tips for repatriating back to Australia

1) Start planning early

Just like your retirement plan, your repatriation plan is an important financial milestone so we recommend that you plan for leaving, soon after you arrive.

2) Take advantage of your principal place of residence capital gains tax exemption, but make sure you understand the recent changes

Did you know that you can rent out your former principal place of residence for up to 6 years capital gains tax free? These rules have recently changed so its important to speak with an ATS advisor.

Also see: Changes to Australia’s Capital Gains Tax: Impacts on foreign and Australian residents

3) Consider a future family home

Is your former family home perfect for your return back to Australia or should this be “upgraded” to something bigger for your growing family? There are great tax and financial benefits to this strategy such as generating tax losses, exposure to the market now and setting yourself up for when you return.

4) Make sure all of your money is working hard for you

Treat your finances like a business and ensure that they are working hard such as acquiring more Australian property, shares in the share market or other investments.

Also see: Australian land tax and stamp duty changes expats need to know about

5) Set realistic goals for savings targets 

Sit down with your respective partner and set family goals of cash which you want to save every month, then track it. Holidays are wonderful but make sure you balance your spending.

6) If you can’t beat the banks, buy the banks!

The big 4 banks have over the years paid dividends to their shareholders with returns at 5-6% per year. Australian shares can also be capital gains tax free when you are out of Australia and the dividends concessionally taxed. 

7) On return

Minimise private debt! Once this is paid down, you can then make new drawings to reset the tax-deductible nature of them.

8) Return in better shape than you left

Setup a repatriation model and continue to review and update the model with professional advisors ATS.

Gain a full understanding of your Australian tax obligations and opportunities and book a no cost, no obligation consultation by phoning +44 207 538 3914, emailing ats@smats.net or visiting Smats.net/Tax