info@remaccounting.com.au
  • (03) 8797 5399
  • Recent News – REM Accounting
    • Home
    • Our Difference
    • Services
      • Accounting & Tax
      • Self-Managed Superannuation Funds
      • Business Advisory
      • CFO Advisory
    • Resources
      • Recent News
      • Useful Links
    • Contact Us

    Removal of the main residence exemption for non-residents

    By admin • 23 December 2019 • Tax

    The government has changed capital gains tax (CGT) rules for foreign residents under the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019, which was granted assent on 12 December 2019.

    The law change no longer allows foreign residents to claim the CGT main residence exemption, which will impact people who are overseas or will be going overseas and want to sell residential property in Australia while they are a tax non-resident of Australia. However, this may not apply if you were a foreign resident for tax purposes for a period of six years or less during a CGT event occurrence on your Australian residential property, and a ‘life event’ occurred, including if:

    • You, your spouse or your underaged child had a terminal medical condition.
    • Your spouse or underaged child died.
    • The CGT event involved the distribution of assets between you and your spouse because of divorce, separation or other maintenance agreements.

    Individuals who will be impacted by the changes are non-tax residents who:

    • Sell a property bought after 9 May 2017 and do not experience a ‘life event’.
    • Sell property after six years of becoming a tax non-resident of Australia, regardless of a life event.

    If you were not an Australian resident for tax purposes while living in your property, then it is unlikely that you will meet the requirements for the CGT main residence exemption.

    Tweet
    0
    Closing the office for the holidays
    Don’t delay new business ideas

    About the Author

    admin

    You Might Also Like

    • The pre mixed investment options that are available to you

      The pre-mixed investment options that are available to you

    • Do you need to be paying luxury car tax

      Do you need to be paying luxury car tax?

    • Which records you need to keep for the rental properties you own

      Which records you need to keep for the rental properties you own

    • 3 amounts not classified as income

    No Comments

      Leave a Reply Cancel Reply

      You must be logged in to post a comment.

      Recent Posts

      • Responding to difficult employees
      • Things that you should not include in a will
      • The pre-mixed investment options that are available to you
      • What salary packaging can involve
      • Spotting unauthorised and mistaken transactions

      Archives

      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018

      Categories

      • Business
      • Legal
      • Money
      • People
      • Super
      • Tax
      • Web

      RECENT COMMENTS

        Subscribe & Follow

        Subscribe to our newsletter and keep up to date with the latest news from REM Accounting & Advisory

        REM accounting logo
        • Accounting & Tax
        • Self-Managed Superannuation Funds
        • Business Advisory
        • CFO Advisory

        Association LogoAssociation Logo
        Copyright © 2018 REM Accounting and Advisory | Privacy Policy

        Liability limited by a scheme approved under Professional Standards Legislation