Individuals who are foreign tax residents will no longer have access to the CGT main residence exemption from 7.30pm (AEST) on 9 May 2017. The exemption is removed if the owner is a foreign resident for tax purposes on the date of the event.
The government has since announced that the original budget announcement will be amended so that temporary tax residents will still get the main residence exemption.
There is no proportionate method available for foreign residents in circumstances where the owner was a resident and non-resident during the ownership period. Also, the exemption will not apply in compulsory acquisitions.
Existing properties held before this date will be grandfathered until 30 June 2019.
For further information please contact your RCB Advisors team member.
Source: Exposure Draft - Housing tax integrity Bill 2017; 2017/18 Federal Budget, Budget Paper No 2, p 27.
