Capital Gains on Overseas Assets

Migrants are subject to tax on overseas gains with a credit being given for tax paid in that jurisdiction on the capital gain.

When migrating to Australia, should you continue to hold assets outside of Australia you will be deemed to have acquired the asset at the date of becoming an Australian tax resident (not necessarily on date of migration). On the disposal of an asset you will be subject to tax on the difference between the net selling price and the value at date of becoming a tax resident.

It is therefore prudent for the migrant to get an appraisal of value of their overseas assets shortly before migrating or before becoming an Australian tax resident.

Capital assets acquired before 19 September 1985 are exempt from Capital Gains Tax in Australia.