• Non-resident beneficiary

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Any capital gain or loss is not disregarded if a post-CGT asset owned at the time you die passes to a non-resident for tax purposes and

    • you are an Australian resident at the time you die and
    • the asset does not have the necessary connection with Australia.

    Some examples of assets which have the necessary connection with Australia are real estate located in Australia and shares in an Australian resident private company.

    In this case, a CGT event happens in relation to the asset just before you die. A capital gain is made if the market value of the asset on the day you die is more than the asset's cost base. A capital loss is made if the market value is ess than the asset's reduced cost base. Any capital gain or loss is included in the date of death return. Again, the trustee of your deceased estate, not the non-resident beneficiary, pays any tax on any net capital gain.

    Last modified: 18 Sep 2009QC 18323