Main residence exemption removed for non-residents

The Federal Budget announced that non-residents will no longer be able to access the main residence exemption for Capital Gains Tax (CGT) purposes from 9 May 2017 (Budget night).  Now that the draft legislation has been released, more details are available about how this exclusion will work.

Under the new rules, the main residence exemption – the exemption that prevents your home being subject to CGT when you dispose of it – will not be available to non-residents.  The draft legislation is very ‘black and white.’

The rules have also been tightened for property held through companies or trusts to prevent complex structuring to get around the rules. The draft amends the application of CGT to non-residents when selling shares in a company or interests in a trust.

…To find out more details about how this exclusion may affect you or to determine who is a resident for tax purposes… please come and talk to Tax Ideas Accountants & Advisershttps://taxideas.com.au/booking/

Tel: (02) 8318 1545

Posted in News & Events, Tax Updates.