Check if you are eligible for the 50% capital gains tax (CGT) discount as a foreign resident.
Foreign and temporary resident individuals, including beneficiaries of trusts and partners in a partnership:
- are subject to CGT on taxable Australian property
- aren’t entitled to the 50% capital gains tax (CGT) discount for assets acquired after 8 May 2012.
If the asset was purchased after 8 May 2012, and you remain a foreign or temporary resident for the entirety of ownership, you aren't entitled to any CGT discount when you sell the asset.
You may apply a discount to your capital gain on assets acquired on or before 8 May 2012. There are 2 methods, if both apply, you can choose which one to use:
- If you had a period of Australian residency after 8 May 2012, you may pro rata the discount for the number of days you were an Australian resident after 8 May 2012.
- If you were a foreign resident or temporary resident on 8 May 2012, you can use the market value method to calculate your discount instead of the pro rata method.
The easiest way to calculate your CGT discount is to use the worksheet (PDF 222KB).This link will download a file
See, Income Tax Assessment Act 1997 - Part 3-1-Capital Gains and Losses: General Topics, Section 115-115 Foreign or temporary residents - percentage for individuals for CGT discount formulas.Check if you are eligible for the 50% capital gains tax (CGT) discount as a foreign resident.