For Hong Kong and Mainland Chinese families relocating to Australia, one point matters above most others: the order in which things happen. A family member’s move to Australia changes how existing trusts, companies and investments are treated, and many options are available only before that move, not after it.
Why the timing matters
Australian tax residents are generally taxed on worldwide income. Once a family member becomes an Australian tax resident, income and gains from overseas assets may become taxable in Australia. Some temporary visa holders are treated differently, which is one reason the type of visa and the expected length of stay should be part of the planning.
Foreign trusts are treated specially. Distributions from a foreign trust to an Australian resident beneficiary can be taxed in Australia, and in some cases accumulated income from earlier years is taxed with an interest charge. Separately, Australia’s transferor trust rules can attribute a foreign trust’s income to an Australian resident who transferred property or services to it. Whether those rules apply can depend on when assets were transferred and on the transferor’s residency at that time.
Home-country obligations continue. A family member may remain a tax resident of Mainland China, depending on factors such as where their household registration, family and economic interests are, even while living in Australia. Chinese tax authorities have become noticeably more active on offshore income: in January 2026 they publicly encouraged residents to review and report overseas income, and some regions have asked individuals to self-review prior years. How Chinese law treats contributions to, and distributions from, an offshore trust should be confirmed with a Mainland Chinese tax adviser before any restructuring.
Information is exchanged. Under the Common Reporting Standard, account information flows between Australia, Hong Kong, Mainland China, Singapore and many other jurisdictions. Plans should assume full transparency.
A practical sequence
- Review before the visa is granted, not after arrival. List every trust, company, account and property, who owns it and who controls it.
- Obtain tax advice in each relevant country on the consequences of the move, including Australian residency tests and home-country residency rules.
- Review trust deeds. Consider who the beneficiaries are, how distributions and accumulations will be handled once a beneficiary is resident in Australia, and how control passes on death or incapacity. See offshore trusts with Australian beneficiaries.
- Put Australian estate documents in place. An Australian will and enduring power of attorney, drafted to work alongside Hong Kong or Mainland Chinese wills, so that one does not revoke the other. See wills in more than one country.
- Keep records of values and dates. Market values at the time of becoming resident, and the history of transfers to trusts, can be important later.
How we assist
We advise Hong Kong and Mainland Chinese families on the Australian legal aspects of relocating: Australian wills and powers of attorney, the treatment of offshore trusts with Australian beneficiaries, and coordination with the family’s tax advisers in Australia and Asia. We provide services in Mandarin, Cantonese and English. We do not provide tax advice, and tax outcomes should be confirmed with a qualified tax adviser in each jurisdiction. Justin Chua is a Nationally Accredited Mediator and an Affiliate member of STEP.
Frequently asked questions
When should a family moving to Australia review its trusts?
Before the relevant family member becomes an Australian tax resident. Some planning options are only available before the move, and reviewing structures afterwards may be more costly or less effective.
Are distributions from a Hong Kong or Singapore trust taxed in Australia?
They can be once the beneficiary is an Australian tax resident. In some cases accumulated income from earlier years is also taxed, with an interest charge. The outcome depends on the trust and its history, so specific tax advice is required.
Does moving to Australia end Mainland Chinese tax residency?
Not necessarily. Chinese residency depends on factors such as household registration, family and economic ties and time spent in China. A family member may have obligations in both countries, so advice should be obtained in each.
Do I need a new will when I move to Australia?
It is strongly recommended. An Australian will ensures Australian assets can be administered efficiently, and it should be drafted to work with any existing will in Hong Kong, Mainland China or elsewhere.
Chua Tan Associates advises families, executors, trustees and their professional advisers on estate planning, estate administration and estate disputes, in Australia and across borders. To arrange a confidential consultation, please contact our Melbourne office on +61 3 9602 3988 or submit an enquiry. Advice is available in English, Mandarin and Cantonese.
Justin Chua (蔡智勋), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal or tax advice. Victorian law unless stated otherwise.
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