Foreign residents and the main residence exemption (March 2020 Client Alert)

| Accounting

If you once had a main residence (home) in Australia and are no longer an Australian tax resident, then new laws now mean that you could be subject to many thousands of dollars in tax on sale of that property.

 

Essentially, the CGT main residence exemption now includes restrictions limiting foreign residents access to tax-free capital gains on the sale of their old home.

 

The rules around tax residency are widely misunderstood and complex, and we highly recommend a thorough analysis of your situation if are spending, or plan to spend, extended periods of time overseas for work or other purposes.

 

To see other March 2020 Client Alerts, go here.

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