Updated: Feb 3
In a major blow to Australian expats the Government has reintroduced their previously announced propose to remove the Main Residence CGT Exemption for non-residents. This was reintroduced into Parliament on 23 October 2019 as Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019.
The CGT changes for foreign residents are back on again, meaning that expats will lose the CGT main residence exemption. While accounting bodies have raised many concerns about the inequity of removing this exemption, most of the criticisms remained unaddressed. With the new measures provided in the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019, this highly controversial change is once again set to go ahead.
With over 100,000 overseas residents potentially being impacted by this legislation, there continues to be a scramble to work out preemptive and ongoing action to secure our client’s positions. Under the new Bill, your expat clients now have until June 30th 2020 to sell with the existing main residence exemptions (provided their residence was owned on May 9 2017).
If you’ve got overseas clients with a former main residence in Australia, or clients looking to permanently move overseas, then you need to know why this Bill is a concern and what this change could mean for them.