Life in Australia Guide

When you have been living in Australia on a working holiday, for study, or for work and then leave for your home country or a third country, "I'm leaving my home, shares, or crypto behind — what happens with tax?" is a concern unique to migrants. Under Australian tax law, CGT event I1 occurs the moment you cease to be an Australian tax resident. At that point, assets that are not taxable Australian property are treated as if they were "deemed disposed" at their market value at that time, so even if you have not actually sold them, the unrealised gains accumulated up to that point may be taxed. The other tax guides on this site mainly cover the basic reporting of shares and cryptocurrency by residents, so this guide focuses on the in-depth issues that the event of departing has on CGT.

When CGT event I1 occurs, you choose one of two paths: (1) accept the deemed disposal at market value at the time you leave and be taxed now, or (2) make a choice to disregard that gain (and loss) and defer the tax. If you choose to defer, the asset is treated as taxable Australian property until you become an Australian resident again or actually dispose of it, and you are then taxed on the actual gain on sale at that later point.

Whether it is a deemed disposal or an actual sale after deferral, the backbone of the tax calculation is your cost base and the market value at the time you leave. Departers in particular need to keep records supporting these two figures for a long time so that they can settle later without dispute. In principle, records must be kept for at least five years after you lodge for the income year in which the CGT event occurred, but for long-held assets the period from acquisition to sale is long, so you may often need to keep acquisition evidence for effectively much longer (for example, more than ten years) (confirm the exact period against ATO guidance; as at 2026-07).

• Acquisition-related materials: the sale contract, agent's commission, stamp duty, and other receipts for incidental costs of acquisition.
• Materials while holding: records of expenditure that may be reflected in the cost base, such as capital improvements and holding costs.
• Materials at the time you leave: transaction records, market prices, and valuation materials supporting the market value on the date you ceased to be a resident.

An important rule for migrants who leave a home they previously lived in and rent it out is the six-year absence rule. The key points are summarised in the four cases below, but because a separate rule under which the main residence exemption itself may be denied if you are a foreign resident at the time of sale can overlap (including transitional rules), do not conclude based on the six-year rule alone; check the "tax expert consultation" and "finance" guides and a registered tax agent together.

If you are disposing of assets that have lost value around the time you leave, how you use your capital losses determines your tax burden. Know the order and the limits exactly.

• Capital losses can only be offset against capital gains. They cannot be offset against ordinary income such as salary or business income.
• If you have capital gains in the same income year, you deduct the loss from that year's gains first.
• Any loss remaining after the deduction is carried forward indefinitely and can be deducted from capital gains in later years.
• The order is to apply the loss first and then apply any concession such as the 50% discount to the remaining gain (see the separate tax guide for the concession requirements), so do not reverse the order in your calculation.
• Carried-forward losses do not lapse automatically, but you must record and track them yourself, so carry the remaining carried-forward losses over and manage them in your return each year.

Here are common misconceptions and mistakes about departure CGT.

• The misconception that "I didn't sell, so there's no tax" — non-TAP assets may be taxed on a deemed disposal at the point of departure (ceasing to be a resident).
• The misconception that owning a home always means a six-year exemption — if you are a foreign resident at the time of sale, the main residence exemption may be denied, so you need to check this separately from the six-year rule.
• The mistake of trying to deduct a loss from your salary — capital losses can only be offset against capital gains and cannot be offset against ordinary income.
• Failing to keep the market value at the time you leave and acquisition evidence — without supporting materials you may be assessed unfavourably, and the longer you hold an asset, the longer you need to keep records.
• Judging figures based on out-of-date information — withholding rates, transitional-rule deadlines, and the like change over time (for example, the rules on foreign resident withholding changed from 1 January 2025; as at 2026-07). Always confirm the latest rates and thresholds with the ATO.