20 Mar 099 CGT relief for compulsory acquisitions of part of a main residenceIn a media release issued on 19 March 2009, the Assistant Treasurer, Chris Bowen, announced that the Government will extend the CGT main residence exemption for compulsory acquisitions (and certain other involuntary events) relating to part of a taxpayer's main residence. This will ensure that taxpayers do not pay CGT on compulsory acquisitions of part of their main residence and that taxpayers are not worse off as a result of a compulsory acquisition, compared to if the compulsory event had not occurred.
Initial consultation will be undertaken on the design of these amendments - a Discussion Paper providing further information about this proposal has been released on the Teasury website. Later, an exposure draft of the legislation will also be released on the Treasury website for consultation.
The changes will apply to CGT events that happen after the date of Royal Assent. Taxpayers will also have the option to apply the changes from the 2004-05 income year to the date of Royal Assent.
For a copy of the Minister's media release, No 2009/019, 19 March 2009, go here.
For a copy of the Treasury Discussion Paper, go here.