In October last year, a new bill was introduced to parliament announcing that Australia’s foreign resident capital gains tax (CGT) regime will be extended to deny foreign and temporary tax residents access to the CGT main residence exemption.
This bill, which revised the original 2017 bill which had lapsed, provides exclusions in certain circumstances but essentially means if you are a foreign resident for tax purposes, at the time you dispose of your residential property in Australia, you will not qualify for exemption from CGT.
Australian expats who sell property which they own or inherit while living abroad will lose the CGT exemption, meaning that CGT will be calculated and payable from the date on which the property was purchased (not the date at which you left Australia).
These changes come into effect from 30 June 2020. More information can be found on the ATO website – link below.
If you would like to discuss these changes and their potential impacts for you personally, please don’t hesitate to contact us to book an appointment to discuss.
Stay safe and best regards.
The Team at BPI