Non-resident question

I used to be an international student but recently graduated. I have a number of investments in Australia - managed funds, trading account (etrade), online savings account.
I recently liquidated my managed funds account resulting in a capital gain and also consolidated all my funds into an account linked with etrade. What I want to do now is to engage in active trading with etrade not investing in shares and receiving passive income (dividends).
In other words, my assessable income would be the Capital Gains from the buying/selling of shares.
My question is - now that I am no longer a resident of Australia (living in my home country), can I still legally engage in share trading?

I have an active bank account in Australia, an address in Australia for all my correspondences and a TFN.

My home country has no income tax and no tax treaty with Australia

kbryant said:

My home country has no income tax and no tax treaty with Australia

Click to expand...

Does it have nice beaches? I'm keen to move there! :

kbryant,

I'm an expat aussie and I understand that as a non resident :

I have to file an australian tax return for australian real estate income (rent and capital gains if I sold), interest from australian bank accounts, trust income & unfranked share dividends.

Fully franked dividends don't need to be included in my return (but I also don't get any franking credits).

I don't have to pay tax on capital gains for shares bought and sold as a non resident, and I don't get benefits from any capital losses. When I become resident again, any shares I hold that I bought as non resident will be deemed to have been acquired on the day I return at the market price that day.

Of course, you should get professional advice for your particular situation.

Ferret

Hey Ferret, what about shares you buy as a resident but sell as a non-resident.

How does that work?

as I have the same issues as you fellas:

Bank accounts: must inform your bank and they take out 10% of any interest paid.
Technically most trading acccounts can only be used by Australian residents, unless you approach them and the acount was previously opened up in Australia - they can only market to Australian residents.

Please seek advice from the TAX OFFICE though. I am still in the dark regarding this topic. I don't know, in fact I never met him.

Realist,

You can elect to have 'sold' your shares on the day you become non resident, although you dont actually have to dispose of them. You then pay CGT based on the closing price that day.

If you don't elect to have sold them when you become non resident, you pay CGT when you actually sell them on the actual profit.

Ferret