Last year the Federal Government announced that there would be a change to the 50% discount on Capital Gains tax that non-resident Australians have received in the past.
On the 8th of March the Federal Government released the draft legislation that has been presented for public comment. This is the first step in formalising the legislation and once completed will be placed before parliament to be voted on and, if successful, to receive royal ascent.
The affect on Australian expats, should the legislation be passed, will be as follows:
- Discount lost on Net Capital Gains achieved after the 8th of May 2012, even on return to Australia, on a pro rata basis for the period that you lived abroad
- Capital Gains prior to the 8th of May 2012 will still get full CGT 50% discount
- A property valuation will be required. This will be the case only if the legislation is passed through parliament and receives royal ascent.