If you live overseas and have real estate in Australia, you may face capital gains tax (CGT) if you do not sell the house before the end of the financial year (end of June).
According to the new tax law passed on December 12 last year,The government cancelled the exemption for owner-occupied housing.
And the tax period will be calculated from the date of purchase of the property, not the date they travel overseas.For those who bought a house earlier, this may mean huge taxes.
(CGT: The tax levied on the difference between the cost of buying a house and the income obtained when selling the property. If it is income, it is subject to capital gains tax. It may also include interest and municipal fees when holding the property. (Consult an accountant for specific algorithm recommendations)
However, the law stipulates that overseas residents who have begun to hold real estate before May 2017, 5, if they sell their real estate (signing a sale contract) before June 9, 2020, will be able to apply for the capital gains tax main residence exemption (CGT main residence). exemption).
According to specific life events, these special circumstances such as: final medical condition, death or divorce, etc., but only apply to very limited "unfortunate conditions":
Your spouse or child under the age of 18 died during this period;
The CGT incident involves the distribution of assets between you and your spouse due to divorce, separation or similar maintenance agreements.
The "absence rules" may no longer apply:
Previously, the "absence rule" that came into effect on September 1985, 9: If a set of owner-occupied houses is rented out for no more than 20 years at a time (and you have not selected other properties as owner-occupied houses), or you do not rent out, even if the house is indefinite If it is vacant, the tax will not be levied.
This allows many Australian owners to use their own homes for limited-term leases, but they are exempt from capital gains tax.
Now, this rule is no longer valid.
A foreign citizen who bought a house to live in Australia during his coming to Australia, and sells the Australian property when they return to their home country; and Australians who live overseas and mainly live overseas, but return to Australia for temporary residence from time to time, will be affected by this .
The Secretary believes that for foreigners, this action is tantamount to increasing the cost of holding Australian status.
Many people who have obtained an Australian green card will not want to be taxed in Australia for their overseas income. They will not stay in Australia for 183 days in each Australian financial year. (Of course, to determine whether they are taxable residents, they still need to pass Household registration, residence, pension test, etc.).
However, afterwards, they are not Australian taxable residents at the moment of selling their homes. These people will not be able to enjoy the CGT exemption (unless they meet the exemption conditions mentioned above) when they sell their main residences in Australia, regardless of how long they have lived before.
That is: you are a taxable resident of Australia and naturally pay taxes to the Australian government; now if you are not, you cannot collect your other taxes, no, you can't escape, now I still have to find a way to collect a sum of money from you.