Many Asian families now hold wealth in more than one country. The business stays in Kuala Lumpur, Singapore, Jakarta or Shenzhen, the parents buy an apartment in Melbourne, and the children study in Australia and stay. Together these steps can create a structure nobody designed, governed by several tax and succession laws.
Value is often lost in the gaps: a Will that does not reach the right assets, a child whose Australian tax residency affects how a foreign company is taxed, or a trust nobody can control after the founder dies. This article outlines seven areas a family may wish to consider with its advisers. How they apply depends on each family’s facts.
Step 1: Map the assets, the jurisdictions and who controls each one
A useful starting point is to understand each asset: where it is, who legally owns it, who controls it and who benefits. These are often different people. A Malaysian company may be held by a nominee, an Australian trust may be controlled by an appointor, and a bank account may have a joint holder. Different laws may govern different assets; land, for example, is generally governed by the law of the place where it is situated.
Step 2: Tax residency of each person and each entity
Australian residents are generally taxed on worldwide income, and non-residents generally only on Australian-source income. Residency is assessed person by person.
Companies and trusts have their own residency tests. A company incorporated overseas can be an Australian resident in some circumstances involving business in Australia and central management and control or voting power here; the ATO’s view on central management and control is in TR 2018/5. A trust’s residency can depend on where its trustees live and where it is managed. Proposed changes to the corporate residency test have not been enacted (as at October 2026).
Step 3: Choose a holding structure for each asset class
- Personal names. Simple, but personally held assets may offer little protection and generally pass through the deceased estate.
- Company. Can separate trading risk, but Division 7A limits access to profits and companies do not receive the CGT discount.
- Discretionary trust. Flexible, and control can pass through the deed rather than the Will. Under the Tax Reform No. 1 Act, from 1 July 2027 the CGT discount for gains accruing after that date is replaced by indexation and a minimum tax. A separate minimum tax on discretionary trust income from 1 July 2028 is proposed in Bills introduced on 14 October 2026 and is not yet law.
- Unit trust. Fixed entitlements may suit unrelated families or siblings, and state duty and surcharge issues can arise.
- Offshore entity. An offshore company or trust may hold Asian assets, but once family members become Australian residents, the controlled foreign company rules in Part X of the ITAA 1936, the transferor trust rules and section 99B can become relevant.
Step 4: Protect against the main risks
- Divorce: the Family Law Act can look at who controls a structure, not only who owns it.
- Creditors: the timing of any separation of trading risk from family assets can matter.
- Family disputes: shareholders agreements, buy-out terms and dispute resolution clauses may be relevant.
- Political and currency risk: spreading assets and keeping records of the source of funds are issues to discuss.
Step 5: The estate planning layer
- Wills in more than one country. Where a family has several Wills, how they interact, including their revocation clauses, needs care.
- Testamentary trusts. A trust created by an Australian Will may offer protection and tax features, including the excepted trust income rules in s102AG of the ITAA 1936. Genuine testamentary trusts are proposed to be largely excluded from the trust minimum tax, subject to conditions.
- Appointor and director succession. Trust assets and shares held by a trust do not pass under a Will, so the question of who controls them next arises separately.
- Superannuation. Super does not automatically form part of the estate, and death benefit nominations raise their own questions.
- Enduring powers of attorney. Arrangements in each relevant country can affect who can act if a parent loses capacity.
- Liquidity. How tax, debts and equalisation between children would be funded is worth considering.
Step 6: Reporting and compliance
- CRS. Under the Common Reporting Standard, many overseas banks report accounts held by Australian residents, and by entities they control, to the ATO.
- Foreign income. Australian residents generally must declare worldwide income.
- FIRB. Foreign persons generally need approval to buy residential land, and a temporary ban on most foreign purchases of established dwellings began on 1 April 2025 and is to run to 30 June 2029 (as at October 2026).
- AUSTRAC. Banks report certain cash transactions and international transfers. Splitting transactions to avoid reporting can be a criminal offence under s142 of the AML/CTF Act.
- Selling Australian property. Foreign resident capital gains withholding may apply to a sale unless a clearance certificate is provided.
Step 7: Governance and annual review
Families often find a regular review useful, particularly when someone marries, separates or moves country, or the law changes, as it will on 1 July 2027 and may again on 1 July 2028.
One-page checklist: questions to discuss with your adviser
- Who owns, controls and benefits from each asset, and which law governs it?
- What is the tax residency of each family member, company and trust?
- How do the 2027 CGT reform and the proposed 2028 trust tax affect our structure?
- Do our Wills in different countries work together?
- Who will control our trusts and companies after us?
- Are our super nominations and powers of attorney current?
- Are we meeting CRS, foreign income, FIRB and AUSTRAC obligations?
A worked example (illustrative)
A hypothetical scenario, not a real case.
Parents living in Kuala Lumpur owned a Malaysian manufacturing company and two Melbourne apartments in their own names. Their son had become an Australian permanent resident. Questions arose about whether the son’s role in the company could affect its residency, how a future gift of shares to him would be treated, how the apartments would be taxed on a sale, and how Wills in each country should fit together. The right approach depended on facts that needed advice.
Frequently asked questions
What is cross-border wealth planning in Australia?
It involves coordinating ownership structures, tax and estate planning across the countries where a family has assets or members, so that they work together rather than against each other.
Does Australia have inheritance tax?
No. However, CGT can apply when inherited assets are later sold, and distributions from foreign trusts or estates can be taxable in some cases.
Can my children in Australia make my overseas company an Australian tax resident?
It is possible in some circumstances, depending on where the company’s central management and control is exercised and whether it carries on business here. This needs advice on the facts.
Do I need a separate Will for Australian property?
A separate Australian Will may have practical advantages in some cases, but it must work with any other Wills. Whether it suits you needs advice.
Every family’s situation is different, and the answer often turns on details. Book a consultation so we can review your documents and circumstances before you act.
How Chua Tan Associates can help
Justin Chua trained in accounting (Bachelor of Commerce, accounting major) and advises on the legal and tax structure of family wealth together. He is an affiliate member of STEP (the Society of Trust and Estate Practitioners), an Accredited Family Business Advisor and a Nationally Accredited Mediator. We assist with asset mapping, reviewing residency and structures, and Australian Wills, testamentary trusts and powers of attorney, coordinating with the family’s accountant, registered tax agents and lawyers in Malaysia, Singapore, Hong Kong and elsewhere in Asia. Our notary public can certify documents for use overseas, and we advise in English, Mandarin and Cantonese.
Important: This article is general information only and must not be relied on. It is not legal, tax or financial advice, does not take your circumstances into account, and may not reflect changes in the law after publication. Laws of other countries may also apply. Do not act or refrain from acting on the basis of this article. Reading it or contacting us does not create a lawyer–client relationship. Please book a consultation for advice on your situation.
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Chua Tan Associates acts for families, executors, trustees and their professional advisers in 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.
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