Trading the ASX from NZ (returning expat) questions

[Foglefar]

Hi Everyone.

I am an expat Kiwi living in Aus and trading the ASX using CMC Markets. I figured this was probably the best place to ask the following questions - not the sort of knowledge that's easily accessible elsewhere.

Soon, I will be moving back to NZ to retire and I am wondering about the best way to continue trading the ASX from NZ?

Tax set-up - My thoughts are to continue operating in Australia but as non-resident taxpayer using my current CMC trading account and Aus bank accounts. But that will expose me to both withholding tax and capital gains tax in Aus. I believe if I can arrange my tax in NZ (instead of AUS) then I won't be subject to CGT. Are there ways to do this or better options?

Trading set-up - CMC Markets with their online software (which is pretty good), live streaming $10 p/m and their fees are about $10 or 0.1% per order, whichever is larger).

Currency set-up - I use OFX with fees about 1% less than the Aus banks.

I would appreciate thoughts, pitfalls I may not have considered, better ideas etc. Thanks in advance.

[stoploss]

If you are "trading" I believe you will be subject to CGT in NZ .
You are best to get in contact with a decent accountant before the shift and get the right structure from the Get go .
Pretty simple to access the Aussie market from NZ on a variety of platforms.

[Foglefar]

If you are "trading" I believe you will be subject to CGT in NZ .
You are best to get in contact with a decent accountant before the shift and get the right structure from the Get go .
Pretty simple to access the Aussie market from NZ on a variety of platforms.

Thanks Stoploss. It's not easy finding an accountant that is knowledgable in both Aus & NZ tax.

'Trading' - what constitutes the definition regarding NZ CGT?

Cheers.

[stoploss]

Thanks Stoploss. It's not easy finding an accountant that is knowledgable in both Aus & NZ tax.

'Trading' - what constitutes the definition regarding NZ CGT?

Cheers.

I'm not an expert so seek advice . But in NZ it is all around your intention . Did you invest in the company , or did you buy to make a profit . You talking about trading I thought to mean you were buying and selling with the intention of making a profit .
Who trades and tries to lose money ??? The bottom line and what I was told , was just pay the tax on it as if the IRD come after you , you cannot afford to try and prove them wrong ...
Maybe PM "beagle" on here and he could point you in the right direction of an accountant with the trans Tasman skills you require.

[777]

As I understand it once you are a resident in NZ you become a taxpayer of NZ and have to declare worldwide income. If you trade as an individual then what tax liability would you have to Australia? You don't live there any longer. Any tax deducted by Australian organisations, withholding tax and the like, can be claimed on you NZ tax return so you don't have any penalty.

And it is trading profit that is taxed if you are a trader. This is not CGT as some refer to it.

All you need from an accountant is your situation as an NZ taxpayer like the rest of us.

Opinion only as not an expert.

[Foglefar]

As I understand it once you are a resident in NZ you become a taxpayer of NZ and have to declare worldwide income. If you trade as an individual then what tax liability would you have to Australia? You don't live there any longer. Any tax deducted by Australian organisations, withholding tax and the like, can be claimed on you NZ tax return so you don't have any penalty.

And it is trading profit that is taxed if you are a trader. This is not CGT as some refer to it.

All you need from an accountant is your situation as an NZ taxpayer like the rest of us.

Opinion only as not an expert.

Thanks for your help guys. I see your point about paying tax in NZ as a resident but I'm not sure Aus sees it the same way. I suspect they regard income earned in Australia by a non-resident as taxable.

[777]

Well that means thousands of Kiwis are in the wrong.


Read up about the countries NZ has a double tax agreement with. Australia is one of them.