If you stop being an Australian resident for tax purposes, you are taken to have disposed of assets that don't have the necessary connection with Australia for their market value on the day you stopped being a resident.
The capital gain or capital loss is disregarded if you are an individual and were an Australian resident for less than five years during the 10 years before you stopped being one, and either:
- owned the asset before last becoming an Australian resident, or
- inherited the asset after last becoming an Australian resident.
Choosing to disregard making a capital gain or capital loss
If you are an individual, you can choose to disregard all capital gains and capital losses you made because you are taken to have disposed of assets when you stopped being a resident. If you make this choice the assets are taken to have the necessary connection with Australia until the earlier of:
- a CGT event happening to the assets (for example, their sale or disposal)
- you again becoming an Australian resident.