Capital Gains Tax Blow
On 12th December, a law change means that non-residents can no longer claim Capital Gains Tax exemption on their main residence when they sell their property.
If the property was acquired in Australian after 9th May 2017, the main residence exemption will be denied, unless certain life events occur within six years or becoming a foreign resident. These life events include:
For homes purchased prior to 9th May 2017, non-residents have until 30 June 2020 to sell their home if they do not want to pay full Capital Gains Tax on the profit made since the original property purchase. Exemptions may apply in the event that one of the life events listed above occurs.
NOTE: This change only applies if you are not an Australian Resident for tax purposes at the time of the disposal (being when you sign the contract to sell the property).
If you are a foreign resident for tax purposes when you pass away, these changes also apply to your: