Published on 21 Sep 2006
| Took place at RACV Club, Melbourne
On 22 June 2006 the Government introduced a raft of amendments that will completely transform
Australian CGT outcomes for many non-residents. Tax Laws Amendment (2006 Measures No 4)
Bill 2006 will replace the broad list of Australian assets subject to CGT in the hands of a nonresident with a narrow focus on the disposal of interests in Australian real property and Australian
permanent establishment assets. It will also introduce a form of tracing to look through
interposed entities to underlying Australian real property. This aspect of the new rules resembles
the stamp duty regime for land rich trusts and companies.
Foreign residents - CGT and stamp duty
Author(s): Adalene PANDELI, Robert PARKER, Tony O'REILLY This paper provides tax practitioners with technical and practical information on the proposed Tax Laws Amendment (2006 Measures No 4) Bill 2006. It also provides an overview of the land rich regimes in force in the States and Territories and draws comparisons between those regimes and the new CGT rules. There are currently specific measures that deal with CGT for foreign residents that own assets through fixed trusts. This paper also considers the technical and practical issues in relation to the impact of the proposed measures in respect of distributions from fixed trusts and provide comparisons with the existing rules.