Blog Layout

REMINDER: REMOVAL OF THE CGT MAIN RESIDENCE EXEMPTION FOR FOREIGN RESIDENTS FROM 1 JULY 2020

Lowe Lippmann Chartered Accountants

Last December we released a Tax Alert confirming that the Federal Government had revived its plan to remove access to the Capital Gains Tax (CGT) main residence exemption for non-residents, which will directly impact both expat Australians (living overseas for an extended period) and foreign tax residents.

However, it is very important to note that where an Australian resident taxpayer who owns a main residence in Australia, purchased before 9 May 2017 and then becomes a foreign tax resident on (say) 1 March 2020, the taxpayer must dispose of the property by 30 June 2020 in order to utilise the full benefit of the CGT main residence exemption.

In this example, if the taxpayer waits until after 30 June 2020 to dispose of their Australian main residence, no CGT exemption will be available.

While this outcome for tax purposes seems very unfair, and we agree, it is now the law.

The option currently available for taxpayers to utilise the full benefit of the CGT main residence exemption include:

Dispose of the main residence before 30 June 2020;
Wait until you re-establish Australian residence sometime later; or
Do not dispose of the main residence.

Read Tax Alert

Tax Alert - Bill passed for Instant Asset Write-Off of $20,000 for 2024-25

March 27, 2025
Bill passed for Instant Asset Write-Off of $20,000 for 2024-25 There was no mention of the extension of the instant asset write-off ( IAWO ) within the Federal Budget delivered last Tuesday night, leaving many small business taxpayers frustrated and uncertain. However, the Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2025 has now been passed through the Parliament, and it included the extension of the IAWO threshold of $20,000 for assets first used or installed ready for use between 1 July 2024 and 30 June 2025. After the Bill has now been passed by both the House of Representatives and the Senate, it now simply waits to receive Royal assent.

FEDERAL BUDGET 2025-26

March 25, 2025
SUMMARY AND FULL COMMENTARY UPDATES 

Tax Alert - ATO appeals to High Court in the Bendel Case decision

March 20, 2025
ATO appeals to High Court in the Bendel Case decision The Australian Taxation Office ( ATO ) has now applied to the High Court for special leave to appeal the Full Federal Court’s decision in FCT v Bendel [2025] FCAFC 15. Last month, we released a Tax Alert ( see here ) after the Federal Court delivered their unanimous decision that an unpaid present entitlement (or UPE ) owed by a discretionary trust to a corporate beneficiary is not a “loan” for Division 7A purposes. The ATO has also issued an Interim Decision Impact Statement ( DIS ) in response to the Full Federal Court decision. A DIS provides information for taxpayers and advisers, and includes: details of the case, a brief summary of facts, issues decided by the court or tribunal, and relevant legislation and case law.
More Posts
Share by: