Hi All, I am currently living in the UK and have not lived in Australia for the past 6 years. I and am thinking about returning home to Sydney in the next 3-5 years and having finally gotten together a decent sized deposit, I am contemplating buying a place in Sydney's Eastern suburbs that I can move into when I get home. I have done a little research and I am getting mixed views on whether the next 6 months is the correct time to buy however I am looking for some tax advice. I am not earning any income in Australia, only my salary from my London job and minimal interest I have on my cash savings - all in the UK. If I buy a property in Sydney now what will be the tax ramifications of renting it out? I understand I will not have receive the tax free threshold but I am also assuming that any rent I earn on the property will be less than the fees, rates, maintenance and interest I will pay. Australian Salary: 0 Annual Rent: 28,600 Interest on Loan: (26,510) using current rates Property Management: (2000) complete estimate Maintenance: (1000) complete estimate Rates & Fees: (2000) complete estimate Total: (2910) Am I correct in assuming that I can claim all these as deductions against the rental income I will earn? That as in this example I make a small loss I will not be liable for any tax or does that sound too good to be true? To add to the mix I did not file anything when I left Australia in June 2003 to change my residency status (nor have I since) and I haven't filed a tax return in Australia since the 03/04 tax year. Not sure if this changes anything but I lived in London for 2.5 years then moved to the US for 2.5 years and have been back in London again for 1 year. All the time renting property (ie not taking any steps to confirm my permanent resident status here and therefore will not be taxed on any earnings not made in the UK that are not transferred to the UK). I realise that any capital gains will be subject to CGT however I am planning on living in the property once I return home so I am more concerned about my tax status while I am living abroad. Any help and guidance is very much appreciated.