Foreign residents and the main residence exemption no more
Source: Taxation In Australia Journal Article
Published Date: 1 Mar 2020
It can be quite an adventure to live and work overseas for a time, should the opportunity arise. Many who have done so choose to keep their home in Australia because they can maintain the main residence exemption from capital gains tax. However, not anymore. In fact, not ever. Following the 2017-18 Budget announcement, the CGT provisions were amended with effect from 9 May 2017 to abolish the main residence exemption for foreign residents. While there is no grandfathering for existing properties, there is a limited transitional period during which the exemption may still be available. This article examines the technical features of the amendments, the practical consequences, and the tough decision many expats will need to make very soon. In addition, the article sets out how practitioners can help their affected clients make that decision.
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Details
- Published By: David Montani
- Published On:1 Mar 2020
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