Current as at 18 June 2020
A final reminder – if you’re a foreign resident, the transitional period to dispose of your former Australian main residence expires on 30 June 2020.
Full details of this change were discussed in previous newsletters, but in summary, if you don’t currently live in Australia but still own a property that was your family home prior to 9 May 2017:
- If you exchange contracts before 30 June 2020 to sell the property, the main residence exemption will still be available, either in full or on a pro rata basis.
- If you become Australian resident again in the future and sell the property while you are Australian resident, the main residence exemption will still be available, either in full or on a pro rata basis.
- If you sell the property after 30 June 2020 and are not Australian resident at the time of sale, the main residence exemption WILL NOT be available. Capital gains tax will apply to the entire capital gain without the benefit of the 50% CGT discount that is only available to Australian residents.
You’ll find more details on the new rules on the ATO website here.
If you have concerns or queries about this change, please contact us urgently.
This newsletter has been produced by Stanley & Williamson as a service to its clients and associates. The information contained in the newsletter is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this newsletter, it is imperative you seek specific advice relating to your particular circumstances.
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