This is probably the most significant and impacting proposed tax change for Australian Expatriates (non-resident Australian citizens) I have ever seen in 20 years of being in Hong Kong.

This last week I have been inundated with Australian citizens around the world emailing to ask what the new proposed changes within the latest Federal Budget mean.

There is a large change the government has proposed for Australians living overseas that will affect travelling home to Australia and causing concern for being taxed as an Australian resident if you stay in Australia for more than 45 days a year.

The idea being that if you stay in Australia for more than 45 days or more in one income year, Australia taxes you on your overseas income and assets as if you are living in Australia and apply Australian marginal tax and capital gains rates.

This has got everyone spooked on what this means to them.  

So I jumped on a call to record a podcast with my tax expert in Ilana Kramarov from Torque Tax in Melbourne.  Ilana is a well-seasoned professional with a Masters of International Tax who has being on episode 14 of my podcast.  We discussed what is involved and what it will mean to Australians living overseas and wanting to return to Australia for holidays or to see family.

Keep in mind right now that this was tabled in the budget BUT IS NOT currently law as for this to come into effect it still requires parliament approval and royal assent which is when it becomes law.  Whether this means these rules will apply in 2022 or 2023 is yet to be determined but we talk about what is involved in this 22 minute briefing and what the timeline could be.

The Australian Government has a Board of Taxation.  The Board of Taxation is a non-statutory advisory body that provides the Government with real-time advice on tax policy issues by contributing a business and tax community perspective to improving the design and operation of taxation laws.

This board put together a 135 tax report on this matter and is very detailed but if you wanted to read it click here.  The report there is called “Reforming Individual Residency Tax Rules – A Model for Modernisation”.   

Ilana has been gracious in writing a simpler two page summary of what is involved.  Also attached is the new “Residency Rules Flowchart” explaining the tax outcome for Australian citizens abroad.

Click here to download 

The Solution:  There aren’t any solutions in avoiding the 45 day rule in Australia if you stay that long when the legislation becomes law, but there is time to discuss your estate and plan for the tax impact and how to position yourself in Australia.  Simply email me for further discussion.

Sincerely

Todd

Ok! I have finally finished the last of the property podcasts during COVID.  Here is the one on Melbourne/Victoria where it all started for me.

It was Hong Kong in 2003 where I met David Morrell and Chris Koren who pioneered the very first residential property buyer’s agency in Australia and started Morrell & Koren.  

Like all good leads I found them through a happy client referral…a Cathay Pacific pilot actually.  He introduced them and after a brief chat we decided to try our luck with running a seminar at the old Ritz Carlton in Hong Kong to test the waters for demand.

With a little advert in the AUSTCHAM magazine we filled the room with 110 Aussie expats!  I even remember the title of the ad was “How to Buy Australian Residential Property Without Being Eaten Alive!” and had a little shark fin in the picture as a poke at the property spruiking industry at the time that was carving its way through Hong Kong selling off-plan apartments in Melbourne.

Well 18 years later I still work with Morrell & Koren for all my clients Melbourne property needs from buying the dream home or investment property.

Part of the boutique team of high performers is Karen Price who has worked with me and my clients for over a decade and has delivered some stunning results for my clients both in securing their properties but as time has proven…some excellent investment returns as well.  

And not an off-plan property in sight!

Karen shares her boots on the ground approach with you on this podcast along with the current temperature check in Melbourne so if your keen to listen to what is happening, jump in for the 25 minutes here.  It’s well worth it.

By all means circle back to me on how to prep for buying property in Melbourne if your keen as the market is moving quickly.

In 2005 a 22 year old starry eyed Aussie with no experience in recycling decided to move to Hong Kong to become a recycling tycoon.  Sixteen years later Damien van Leuven continues to lead and grow his business Vanden Recycling into the UK, Ireland, Finland, Spain, Turkey, UAE, Holland and Australia.

The conundrum of recycling (plastics) is replacing throw away items with more throw away items.  Damien and his team have worked hard to create a sustainable business that has a bank vault of recycling knowledge to help countries recycle and trade their waste.

Recycling plastic at its core revolves around oil and natural gas as the commodity items used to make plastic that we use everyday in our clothes, drink bottles, computers, phones and just about everything else on the planet.

A portfolio “tilt” is industry slang for an investment strategy that overweighs a particular investment style. An example would be tilting to small-cap stocks that have historically delivered higher returns than the stock market. Overweighing to a style is always done with the expectation of achieving a higher return or higher risk-adjusted return than the market.

“Going green” or being “environmentally friendly” used to be thought of as an idealistic endeavor pursued at the expense of revenue and profits…not anymore.

Listen to this podcast to understand more about recycling but also to recognize the opportunity this space will have in the future as government regulation means more bottling and plastic companies are required by law to be 100% recycling.

Mike Robertson grew up in Perth and moved overseas as an expat for many years before returning to Perth and now operates a boutique Buyer’s Agency looking for residential property predominately in the prestige suburbs of Perth.

I've known Mike for 20 years and he has done some amazing things through his career.  What has always been a big part of his life is Perth property.  He was born into a property family with an Architect father and an interior designer mother.  Along with Mike's accounting and banking background and you have a formidable resource in his chosen niche market.

Mike has a street level knowledge of the catchment area around Claremont, Dalkieth, Nedlands, Cottesloe, Peppermint Grove through to where he lives in Mosman Park.

Listen to this podcast of the inner workings of sourcing prestige residential property in Perth.

I have worked with Scott Durell for over a decade and he always delivers.  He's honest and direct approach has helped guide my clients into homes and residential properties in and around Perth.

Scott is an outlier in the industry as well because he also looks at commercial and industrial property deals, looking for solid tenants and yields.

Listen to this podcast for a helicopter view of the entire Perth property market and if you wish to get involved, circle back for a discussion on finance first.  As Scott and all these buyers agents are telling me...you will not even get a look in on property right now unless you are paying cash or your finance is 100% ready to go.

Getting into Australia during COVID is challenging as flight availability, seats and politics is pushing around the lives of Global Aussie Citizens around the world.

Personally I had challenges getting back to Australia for Christmas and if it wasn’t for Ingrid Borgas, I doubt I would have made it.  But I did make it in and out of quarantine with three days spare to see my family for Christmas. Phew!

Ingrid is a travel virtuoso which goes beyond booking flights, but handling your entire itinerary, keeping you up to date with travel restrictions and being able to have a dialogue with a seasoned professional who can help get you and your family back to Australia safely.

Or get you back overseas if you are needing to work or travel for whatever reason.

If you are trying to get back to Australia this year, leave or travel interstate as domestic borders return and travel bubbles percolate, then listen to this podcast.  You will learn a lot about the travel industry and having a relationship with someone who is connected will benefit you.

Better still…get Ingrid to book everything by clicking here.  She helped me!  Hope she can help you as well.

Getting a loan on Australian residential property for overseas Australians (expats) is tough.

The haircutting happening to loan applications during COVID and the moving sands of bank approval is changing on a weekly basis at present.

Enter Tony McCoy who I have known for 20 years to explain what to expect.

The finance game has changed forever, the compliance and approval of loans has extended and complicated matters and having an expert hold your hand through the process is far more detailed than most realize.

Tony’s loan minimum is $1million AUD for property and the competition is heating up in Australia as bank and non-bank lenders all look to establish a market share in their preferred niche and Tony understands their sweet spot.

If you have any questions about finance or wish to obtain a loan, email me direct before you discuss with a bank or lender and we can discuss the best process going forward.

Keeping with the Australian property market theme during COVID, today I was able to podcast with my buyer’s agency team in Brisbane with Meighan Wells and Diana Edwards to discuss what is happening at the coalface of the Brisbane residential property market.

Meighan and Diana talk about the price point in market segments of Brisbane and what suburbs are moving fast right now.  Speed is of the essence so per this podcast you will see that if you intend to buy residential homes or investment property in Brisbane this year, then you better get your finance in place to be ready and move fast.

Jump in and listen to this podcast hot on the heels of last week’s podcast with Deb in our Sydney market and you will begin to form a picture of what is happening nationally in Australia right now through COVID.

Next week I will bring you our Australian finance podcast with a mortgage broker who has been financing property for Global Aussie Citizens for over 20 years and hear what is happening in the loan process and what banks are currently doing for expat loans.

Coming up as well is our Perth and Melbourne buyers’ agents to complete the picture for understanding the entire Australian landscape.

This was a great podcast full of value for anyone looking to invest in the Brisbane residential market this year or looking to buy your dream home.  Checkout the team at www.propertypursuit.com.au 

Sydney Property Just Went Boom!  

It is now a seller’s market but even the sellers are having problems upgrading or downgrading as the level of stock is limited. 

Buying property in the most expensive city in Australia is harder right now than ever before.

Trying to find a property, let alone bid on it and be successful in buying it has become a challenge with the COVID lockdown creating a price squeeze in Australia.

Weekend auctions normally have a clearance (sell rate) of 60-70% and last weekend it hit 88.7% which is unheard of.

Off-market property is not formerly listed on a website like realesatate.com.au or advertised in newspapers, it is a trading world in property where discussions and transactions are done behind closed doors.  Only those with a backstage pass or connections to a related trading party get to see the property and bid on it.  This trading world has been booming right now and Deb and or her team are in the middle of it.

Listen to Deb Smith from Sydney Slice talk about the current Sydney market where Deb is buying property anywhere between $2 million AUD at the low end to over $80 million AUD at the high end! Yes that’s not a typo.

Check out the episode now and visit Deb at www.sydneyslice.com  

Being a Global Aussie Citizen also means you gotta get home sometimes and during a world pandemic before Christmas, it has proven a little tricky to say the least!

This episode I fly solo and have just dropped a short 15 minute episode about my experience in booking flights, landing, and going into hotel quarantine in the effort of seeing my family for the first time in 6 months and being out before Christmas day.

Helluva ride but I made it into Perth and am currently in two weeks quarantine so if you want to know what journey lays ahead for you to get into Australia or are simply curious as to what happens and what the process is, then tune in as I explain the milestones along the way.  Frankly I didn’t know all the steps until I walked through them.

Good news is after my first test I am Covid free!

Hope you are your family are safe as the world begins its tipping point with the first vaccination injections this week and we can move to the next phase of this new world we live in.