The changes to Capital Gains Tax for Australian Expats were passed through parliament last year, removing the tax free allowance if an Expat sells their former home while living overseas, regardless of how long they may have lived in it previously.
There was an exemption period to allow any one to still retain the tax free status if they sold their property prior to 30th June 2020. It is important to note this refers to the contract signing date, not settlement.
We have been seeking an extension of this date due to COVID-19, but to date there are no announcements on that so you need to assume that nothing will change.
You should note this doesn’t affect any property you have never lived in previously, nor will it affect you if you do not sell your property until you have returned to live permanently in Australia.
If you miss the deadline, then hold on to your property and consider using debt to release funds rather than sale.
If you need assistance in quickly assessing the impact on your former home, email us at tax@smats.net for assistance.
