If I leave Australia, will I be taxed on shares or cryptocurrency I still hold?

When you cease to be an Australian tax resident, CGT event I1 occurs, treating assets that are not taxable Australian property (for example, listed shares, managed funds, cryptocurrency, or overseas assets) as if they were "deemed disposed" at their market value at the time you leave, so the unrealised gains accumulated up to that point may be taxed. By contrast, taxable Australian property such as Australian real estate is not subject to I1 and is taxed when you actually sell it. Because the treatment differs by asset, confirm with a registered tax agent.

Can I avoid paying tax now and defer it until I actually sell?

Yes. For assets subject to the deemed disposal, you can make a choice to disregard (defer) that gain (and loss). If you make this choice, the asset is treated as taxable Australian property until you become an Australian resident again or actually dispose of it, so instead of being taxed now on the unrealised gain, tax is deferred until you actually sell. However, which option is more favourable depends on future asset value, your country of residence, exchange rates, that country's tax system, and more, so there is no automatic right answer . Always decide in consultation with a registered tax agent.

Can the six-year rule only be used once in a lifetime?

No. If, before the six years are up, you move back into the home and make it your actual main residence again and then leave once more, the six-year period may start again from the beginning . However, in principle only one home can be treated as your main residence at any one time, and the reset has its own requirements, so confirm the actual application with a registered tax agent.

If I make a capital loss, can I deduct it from other income such as my salary?

No. A capital loss cannot be offset against ordinary income such as employment income; it can only be offset against a capital gain . It is first deducted from capital gains in the same income year, and any loss you cannot offset is carried forward indefinitely and deducted from capital gains in later years. Carried-forward losses do not lapse automatically, so keep records of them on an ongoing basis.

How do I prove the value of my assets at the time I left the country?

Because it forms the basis for the deemed disposal or for calculating your future cost base, you should keep records supporting the market value as at the date you left (the date you ceased to be a resident) (transaction records, market prices, valuation materials, and so on), along with the purchase contract, incidental costs, and receipts for improvements from when you acquired the asset. Records must be kept for a considerable period even after you lodge for the income year in which the CGT event occurred, and for long-held assets you may need to keep acquisition evidence for a very long time (confirm the exact period with the ATO).

Can I make these decisions on my own?

CGT varies greatly from person to person because asset type, residency, transitional rules, and the tax systems of both countries are intertwined. This guide is for information only and is not tax or financial advice. Consult a registered tax agent (registered with the Tax Practitioners Board, TPB) , and you can check whether an agent is registered on the TPB public register.

Australia departure capital gains tax (CGT) in depth — I1 deemed disposal, six-year rule, selling assets - Ballarat

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Capital gains tax (CGT) in depth — departing, non-resident traps, six-year rule, selling assets

From CGT event I1 (deemed disposal) on shares and assets when you leave Australia, to the six-year main residence rule, offsetting and carrying forward capital losses, and record-keeping for departers — an in-depth CGT summary for foreigners living in Australia.

Departing and CGT event I1 — what's the issue

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.

Distinguishing TAP from non-TAP

Taxable Australian property (TAP) is typically Australian real estate and comparable interests, which remain within the Australian CGT net even after you cease to be a resident and are taxed when you actually sell. By contrast, non-TAP assets (for example, listed shares, managed funds, cryptocurrency, and overseas assets) become subject to the deemed disposal of CGT event I1 at the time you leave. In other words, the key distinction is that a home is taxed when you sell it, while shares, coins, and the like may in principle have the point of departure as the taxing point. Confirm which assets qualify as TAP against the ATO definitions.

Immediate taxation vs the choice to defer

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.

What to base your decision on

Immediate taxation has the advantage that settlement is finalised at current rates and exchange rates, and Australia does not later reconsider any future increase in value, but you may have to pay tax in cash on an asset you have not even sold yet. Deferral has no immediate cash burden, but when you actually sell later, separate rules such as the denial of the 50% discount and the denial of the main residence exemption for foreign residents may overlap and change your tax burden (see the separate tax and tax-expert guides for those rules). Neither option is automatically more favourable, and you need to consider your future asset value, the tax system of the country you will live in, and any double-tax treaty together, so decide in consultation with a registered tax agent.

Roughly work out the unrealised gain or loss (current market value minus cost base) for each asset you hold.

Cost base record-keeping rules for departers

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.

The six-year main residence absence rule

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.

Up to six years while renting

If you use the home you left to produce income (rent it out), you can choose to continue treating it as your main residence for up to six years. Any period beyond six years may be excluded from the exemption calculation.

If you don't rent it out

If you leave the home vacant and do not use it to produce income, the six-year cap may not apply to the period it is treated as your main residence (indefinitely). However, you must meet the other requirements.

Resetting the six years

If, before the six years are up, you move back into the home and make it your actual main residence again and then leave once more, the six-year period may start again. Repeated application comes with requirements.

One main residence at a time

While you are applying the absence rule, in principle you cannot treat another home as your main residence at the same time (there is a limited overlap exception). If you make a new home your main residence, the treatment of the previous home changes.

Offsetting and carrying forward capital losses in practice

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.

Common mistakes and cautions

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.

Life in Australia Guide