Updated: Feb 3
The nightmare for Australian expats has become a reality with the passage of Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019 through the Senate today, now awaiting Royal Assent.
In short if your accounting practice has clients that are non-residents (whether Australian citizens or otherwise) and they sell their former main residence any time after 30 June 2020 they will not be entitled to any CGT Main Residence Exemption.
This will be the case, even for that part of their ownership period where they actually lived in the property in Australia and as a result it could expose them to a material amount of tax. Consequently, advising a departing Australian will become trickier than ever. Expand members can join us for our Expand Members webinar that we will be running to discuss these changes on Monday 16 December - 12 noon AEST.