Stephen Thaxter- Partner and Principal Adviser
Sovereign Wealth Partners
Do you know anyone abroad who might be selling their Australian home? You might be doing them a massive favour by suggesting they seek tax advice before selling. We’d be happy to help point them in the right direction.
Until 12 December 2019 both Australian tax residents and foreign residents qualified for an exemption from capital gains tax on the sale of their main residence in Australia. Since then, new tax legislation denies this exemption for those who are not resident in Australia for tax purposes when their property is sold. Limited exemptions and transition rules apply but those not aware of these new rules may unknowingly incur very significant tax liabilities.
Non-residents may consider delaying a sale until they return to Australia and resume their residency. Either way they should seek advice from a tax professional. It’s worth remembering that a sale for tax purposes is made at the date of the contract, not at the date of settlement.
Cover image- BTLawyers