Australian living overseas have generally been able to claim a full or partial capital gains tax exemption on the family home.

From 1 July 2020, if you are a foreign resident for Australian tax purposes at the time you dispose of your residential property in Australia, you may not qualify for the full or partial exemption from capital gains tax unless you satisfy certain criteria. Also the resulting capital gain will be taxed at non-resident rates.

Strategies to consider include:

  • Those who are currently foreign residents for Australian tax purposes; delay any intended sale until they have regained Australian residency for tax purposes
  • Those who are currently Australian residents for Australian tax purposes, but who will become a foreign resident;  consider selling the property prior to leaving Australia

Please contact us if you require further details.