Does anyone know if going on a visa validation trip before you sell your house makes you a tax resident. I've heard that as long as the proceeds reach an Aus bank before you become tax resident, you don't pay tax.

- Agreed that a validation trip (ie a holiday) to Australia usually doesn't trigger tax residency.

- Not sure what your second sentence is saying ... can you expand on it?

Best regards.

Sorry, will try!
If we sell our house in England and transfer the money to an Australian bank before we move permanently, will we have to pay tax to the Aus government on the amount. Thought i read somewhere that if the money is transfered after you become tax resident,you are liable to a hefty tax bill. Or have i completely grasped the wrong end of the stick!!
Many thanks for your patience!!!!!

No, I think you are probably worrying unnecessarily ... though you might have tax issues if you retain UK£'s once you have become tax resident and their value in A$ terms increases or decreases between the date of your becoming tax resident and the date on which you dispose of the UK£'s (eg if you convert them to A$'s, if you use them to pay a UK debt, if you transfer them from one spouse/partner to another, etc).

In other words the disposal of your main residence and the remittance of the net proceeds to Australia before you become tax resident in Australia has no tax consequence - but delaying may give rise to tax issues.

Does this help?

Best regards.

quote:

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Originally posted by lesley street:
Sorry, will try!
If we sell our house in England and transfer the money to an Australian bank before we move permanently, will we have to pay tax to the Aus government on the amount. Thought i read somewhere that if the money is transfered after you become tax resident,you are liable to a hefty tax bill. Or have i completely grasped the wrong end of the stick!!
Many thanks for your patience!!!!!

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Dear alan

Thank you so much for your reply.Think we're just about ready now to take the plunge and start the application process!!