Is It Safe For Australian Expat Property Owners?
Is It Safe For Australian Expat Property Owners? – As our clients and blog subscribers would be aware we have been lobbying heavily against the proposed CGT changes to the Main Residence Exemption that were announced in the 2017 Australian Federal Budget.
Last week whilst speaking at the Tax Institute’s National Conference the Assistant Treasurer Stuart Roberts responded to a question about the 2018–19 Budget measure regarding the tax rates on testamentary trust distributions that apply to minors.
“Sometimes things get announced and don’t get progressed and it’s just best to leave it that way”.
A later question was posed to the Minister: “Just going back to what you said about announcing things and they don’t progress, on the May 2017 announcement about non-resident Australian citizens losing access to the main residence exemption retrospectively: that legislation hasn’t been passed, is that likely to change and it disappear forever?”
The Minister replied:
“Go back to my previous comment.”
On first glance this appears to be the end of the proposed changes that would have punitively affected Australian expat property owners however the government has shown little to no sympathy towards Australian expats since the proposal was announced and there has been no communication with a body of Australians that would fill Canberra, Hobart, Wollongong and Darwin.
To put this disastrous experience behind us we need the Government to formally announce once and for all that they are abandoning these proposed changes and provide Australian expats with the peace of mind knowing that they don’t have to sell their property.
What we don’t want to see is an announcement on Budget night (2nd of April) that they’re scrapping the old proposal and introducing a new, revised bill with some revisions.
Make sure you register for our live webinar the day after the budget is handed down to see whether the above proposals are introduced and any other changes that are announced.