fbpx
Country

Bill Denying CGT Main Residence Exemption Receives Royal Assent

Bill Denying CGT Main Residence Exemption Receives Royal Assent – the battle to defer the proposed bill denying the CGT Main Residence Exemption for Australian expats is now over as the bill received Royal Assent on Thursday the 12th of December.

This follows the bill passing the House of Representatives on the 27th of November and the Senate on the 5th of December.

Effective from 7:30pm (AEST) on the 9th of May 2017, the bill removes the entitlement to the CGT main residence exemption for foreign residents (including Australian citizens living overseas) in relation to CGT events occurring with their former principal place of residences in Australia.

There is a transitional period which has been extended to the 30th of June 2020 for those Australian expats already residing overseas as at the 9th of May 2017.

As a result of the bill passing through government any Australian expat living overseas who sells their Australian main residence (and who is living overseas at the time the contract was signed) will no longer be entitled to access the CGT Main Residence Exemption that was previously afforded to expats.

In the latest iteration of the bill a new exception for Australian expats was included whereby if you lived overseas for less than 6 continuous years and where certain life events where to occur then you maybe still able to access the CGT Main Residence Exemption.

Read More – Inclusion of Foreign Excluded Resident and Life Events terms in the latest bill.

Now, more than ever, it is imperative that when ascertaining what an Australian expats tax liability maybe from the disposal of an asset that they take into account these new changes and ideally seek professional advice before they enter into a contract where a capital gains tax liability maybe triggered to ensure that they understand what the end result may be.

 

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest