NZ citizen owning a rental in Australia

[Oliveoil173]

We bought a house in Australia with the intention of shifting over from NZ to be closer to family. We initially rented out the home
and thought that we would shift, gain employment and then be able to claim tax back for our losses and depreciation. The ChCh earthquake happenened and our house in NZ was severely damaged. We are still waiting for a solution five years later. I am past retirement age but still working in NZ. Is there any way we can obtain the Australian tax money? We still intend to live in Australia but most likely for 6 months every year. Can we keep the original property and buy another house in Australia negative gearing until our home is saleable in NZ? We seem to be between a rock and a hard place.

[Damap]

Talk to GRA, (Gilligan Rowe and Associates). They do trans tasman tax and can help. There will be a good solution.

[Eljay1]

I'm not sure what you mean, do you submit an Aus tax return annually re your rental over there? Are you asking if you should get a tax rebate in Aus? Impossible to answer without knowing the figures. I thought that if you were an NZ resident for tax purposes that any tax rebate owing in Aus would be deducted from your next tax return but I'm not an accountant. I also use GRA so you could try them for advice if you don't already have an accountant specialising in investment or with a knowledge of overseas investment. Whether you can borrow more to buy again in Aus is a question for your mortgage broker. If you're still working and have a good broker and serviceability it may well be possible. Hope you get sorted

[Rosco]

Hi,

I'm also a bit confused with your questions. Here is some basic info that might help

1) if you have Aussi property, that is rented, then you need to complete Aussi tax return for this
2) As you are a NZ tax resident, then you need to return the Aussi rental in your NZ tax return as well, converted to NZ dollars and tax laws. If you pay Aussi tax, then you should get a credit for it in your NZ tax return. If the rental in Aussi is a loss, then this loss should be able to offset your NZ personal income.

It does depend on what structures you have used and I presumed you are renting the Aussi property.

Ross

[Oliveoil173]

Thank you for your advice. I have some homework to do. :-)

[tpr2]

Hi Rosco

What happens if that loss in Australia is due to division 43 depreciation (building)?
Do you still get to offset the full loss here in NZ or is the building depreciation quarantined in Oz and carried forward?

cheers

Hi,



1) if you have Aussi property, that is rented, then you need to complete Aussi tax return for this
2) As you are a NZ tax resident, then you need to return the Aussi rental in your NZ tax return as well, converted to NZ dollars and tax laws. If you pay Aussi tax, then you should get a credit for it in your NZ tax return. If the rental in Aussi is a loss, then this loss should be able to offset your NZ personal income.

It does depend on what structures you have used and I presumed you are renting the Aussi property.

Ross

[Rosco]

Hi Rosco

What happens if that loss in Australia is due to division 43 depreciation (building)?
Do you still get to offset the full loss here in NZ or is the building depreciation quarantined in Oz and carried forward?

cheers

in my original post, "converted to NZ dollars and tax laws". So won't be allowed any deduction for building depreciation.

Ross

[tpr2]

thanks Ross.... I missed the ...and tax laws.

cheers