Proposed concessions for temporary residents

The Government has announced changes to the tax treatment of individuals who are first time temporary residents of Australia. Under the proposed amendments any capital gains or capital losses made by such persons on the disposal of assets that do not have the necessary connection with Australia (except for the disposal of portfolio interests in publicly listed companies and resident unit trusts) will be disregarded if the CGT event happens on or after 1 July 2002. To date the legislation for this measure has not been passed by parliament.