In addition to the new rules regarding the CGT Discount for Affordable Housing investments (follow the link for our Newsroom item on the matter), the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 2) Bill 2018 which was recently introduced into Parliament includes the removal of the CGT Main Residence Exemption for Foreign Residents.
Once the legislation is passed, individuals who are foreign tax residents will no longer have access to the CGT Main Residence Exemption. The rule is effective as of 7.30pm (AEST) on 9 May 2017.
Though, as a relief for many, the Government has since announced that the original budget announcement has been amended so that temporary tax residents will still get the main residence exemption.
Further rules apply in situations where the property has had a split use, or where a main residence has passed down through a deceased estate.
Existing properties held before May 2017 are grandfathered until 30 June 2019 so that current property owners may sell their property without tax penalty.
If you believe you may be effected, please contact us so that we can review your circumstances and allow you to prepare for the impact of the new laws.
Check out the Bill’s Explanatory Memorandum here.