CGT rules – foreign residents, temporary residents, changed residency status

There are special capital gains tax (CGT) rules that apply if you are a foreign resident or if you become, or cease being, an Australian resident. Unless otherwise specified, ‘Australian resident’ means a resident of Australia for tax purposes. There are also special rules for temporary residents. These rules do not affect assets you acquired before 20 September 1985 (pre-CGT assets).

For periods when you are a foreign resident or temporary resident, only certain assets are subject to CGT. In addition, when you become an Australian resident, or stop being one, the range of assets on which you pay CGT in Australia changes.

Note: The law has been amended to remove or reduce the 50% discount on capital gains made after 8 May 2012 by foreign residents on taxable Australian property.

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Foreign residents

If you are a foreign resident or the trustee of a foreign trust, you are subject to CGT if a CGT event happens to a CGT asset that is taxable Australian property.

    Last modified: 24 Jun 2016QC 17934