CGT and the family home
If you are a foreign citizen currently living in Australia but planning to leave Australia at some stage in the short to medium term then these new rules are likely to impact on you.
If you owned your home at or before 9 May 2017, you can access the main residence rules on or before 30 June 2019 if you sell the property.
However, if you leave Australia and cease being a resident of Australia before selling the property and the sale occurs after 30 June 2019 then you will not be able to access the main residence exemption. This will mean that you will pay tax at your marginal tax rate on any gain you make on the sale of the property. You are also likely to have limited access to the general CGT discount.
If you are uncertain of your position or the likely impact of these new rules on you, seek advice from Mitchell Partners on 03 9895 9333. Tax residency status is often complex and is not intuitive – it’s important to get it right.