CGT hit on those who sell their home whilst living overseas

Late last week, a highly contentious bill passed which levies a Capital Gains Tax (CGT) hit on those who sell their home whilst living overseas.

It doesn’t matter how long you lived in your former Australian home.  If you sell it whilst loving overseas, you pay tax on the whole gain.  There is neither a reduction for:-

• The time it was your home, nor
• The 50% general CGT tax discount which non-residents are not entitled to since 2012.

We will set out more later.

In the meantime, if this affects you, family or friends, keep the following two tips front of mind:-

• It doesn’t apply to house owned since May 2017 which are sold before July 2020.
• Normal CGT treatment applies if the house is sold when you again become a tax resident of Australia.

In the meantime we welcome any question you may have.

At MRS, we will spend today planning for your success.