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Structuring query - NZ citizen/tax resident investing in Australia

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  • Structuring query - NZ citizen/tax resident investing in Australia


    I was wondering if anybody has any advice to share regarding purchasing entities for property in Australia?

    To outline my situation specifically....
    - I have recently purchased an investment property in Melbourne (6-7 weeks away till settles) and I intend to hold this for the long-term
    - it is currently negatively geared
    - I am a NZ tax resident
    - I'm not married, nor do I have any dependents.
    - I am a PAYE employee and do not own a business
    - I do not own any other property

    I have been told (by my NZ accountant) that if the property is purchased in my own name I can transfer the losses from the property over to NZ and offset them against my NZ income tax (will have to file Australian personal tax return first).

    Based on this, purchasing in my own name seems good from a short/med-term cashflow perspective. However, I do want to consider asset protection as it is a long-term deal but I know that running costs of a trust can be high; as this is only one property is setting up/running a trust worth it?

    Any advice/thoughts would be much appreciated! Thanks,

  • #2
    Aussie is a nightmare structure wise. Buy in your own name, it is the only tax efficient method. It is difficult/almost impossible to create asset protection without huge tax issues.


    • #3
      I agree with Dean in most of the content except the difficulty.

      Asset protection is easy to set up you just miss out on all the tax benefits unless the trust is making a profit.

      The reality is that you are a NZ tax resident anyway, I would of course

      Go with your own name though as any losses will be quarantined in the trust until the trust makes a profit which depending on the property could be some time.


      • #4
        That's exactly what I said Terry, to get asset protection creates huge tax issues :-)


        • #5
          I guess I was just being pedantic Dean.

          If your trust is running profitably in Oz then its a piece of cake. and not too hard to setup.


          • #6
            Hi Terry and Dean,

            Thanks very much for your feedback/advice.....makes things more straight forward!