Posted by: Tom Wood | Date: 23 April 2018
Your ‘main residence’ (your home) is generally exempt from Capital Gains Tax (CGT). To be entitled, the property must have a dwelling on it and you must have lived in it.
Currently, if you are a foreign resident, you are entitled to the main residence exemption in the same way as individuals who are residents of Australia (for tax purposes).
However, as promised in the 2017-2018 Federal Budget announcement, a bill has been introduced to Parliament which could change this. It was passed in the House the Representatives on 1 March 2018 and is now proceeding to the Senate.
The bill is the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018.
It proposes to remove the Capital Gains Tax exemption for the sale of a main residence by a foreign resident.
If the Bill passes:
If you believe you are affected by the changes to the CGT Main Residence Exemption, you should contact our team to discuss your options.