The hares were set running on Friday 5 July 2019, when the ABC reported the Federal Treasurer had confirmed the measures designed to deny non-residents the ‘main residence’ CGT exemption were still Government Policy (despite being announced in the 2017 Budget, introduced in February 2018 as the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018, receiving howls of protest at the time, laid dormant in the Senate since March 2018, received ‘let sleeping dogs lie’ endorsement from the then Assistant Treasurer as recently as March 2019, and then the Bill lapsing, when Parliament was prorogued for the recent Federal election) – see the recent Tax Technical article.
Now the howls of protest return, with the Australian Financial Review publishing an article ‘Capital gains threat revived for expats‘ on 7.78.19. This includes reference to an unexpected complication on the break down of marriage, when one party becomes non-resident and the breakdown in marriage rollover affects the calculation of the main residence exemption).
See below for the full article.
[Tax Month – July 2019]