Tax Laws Amendment (2006 Measures No. 4) Act 2006 (168 of 2006)

Schedule 4   CGT and foreign residents

Part 4   Application and transitional

Income Tax (Transitional Provisions) Act 1997

109   After Subdivision 104-G

Insert:

Subdivision 104-I - Australian residency ends

104-165 Choices made under subsection 104-165(2) of the Income Tax Assessment Act 1997

(1) This section applies if:

(a) a choice was made under subsection 104-165(2) of the Income Tax Assessment Act 1997; and

(b) because of the choice, an asset is taken to have the necessary connection with Australia under subsection 104-165(3) of the Income Tax Assessment Act 1997 just before the commencement of Schedule 4 of the Tax Laws Amendment (2006 Measures No. 4) Act 2006.

(2) To avoid doubt, the choice has effect for the purposes of subsection 104-165(3) of the Income Tax Assessment Act 1997 as in force on and after that commencement.

Note: This means that the asset will be taxable Australian property under the Income Tax Assessment Act 1997 as in force on and after that commencement.

104-166 Subsection 104-165(1) still applies if you continue to be a short term Australian resident

Subsection 104-165(1) of the Income Tax Assessment Act 1997 continues to apply, despite its repeal by item 20 of Schedule 1 to the Tax Laws Amendment (2006 Measures No. 1) Act 2006, to an individual:

(a) who is in Australia on the day on which that item receives the Royal Assent; and

(b) who remains an Australian resident from that day until the time subsection 104-165(1) is applied in respect of him or her.