Main Residence Exemptions

February 12, 2019

In the 2017-18 Budget, the government announced that foreign residents will no longer be entitled to claim the main residence exemption when they sell property in Australia.

 

This change is not yet law and is subject to parliamentary process.

If the law is passed and you are a foreign resident when a CGT event happens to your residential property in Australia, you may no longer be entitled to claim the main residence exemption.
 

  • For property held prior to 9 May 2017, the exemption will only be able to be claimed for disposals that happen up until 30 June 2019 and only if they meet the requirements for the exemption, otherwise they will no longer be entitled to the exemption

  • For property acquired at or after 9 May 2017, the exemption will no longer apply to disposals from that date.


This change will only apply if you are not an Australian resident at the time of the disposal (contract date).

If you have any queries in relation to this change, or you think it may affect you, please contact our office.

 

 

For more ATO information, visit: 

https://www.ato.gov.au/general/capital-gains-tax/international-issues/Foreign-residents-and-main-residence-exemption/ 

 

Please do not rely on this information as advice, you should contact us to assess your individual circumstances and how this applies to you.

 

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MIRANDA ACCOUNTING SERVICES
8/263 – 271 Wells Road, Chelsea Heights Vic 3196
PO Box 476, Patterson Lakes VIC 3197
Tel 03 9773 3647  www.mirandas.com.au 

 

 

References:

Ato.gov.au. (2019). Foreign residents and main residence exemption. [online] Available at: https://www.ato.gov.au/general/capital-gains-tax/international-issues/Foreign-residents-and-main-residence-exemption/ [Accessed 10 Feb. 2019].

 

 

 


 

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