Proposed legislation designed to deter foreign investors from investing in Australian homes will also impact Aussies currently working overseas.
Australia has experienced a boom property prices, much of which is being blamed on the increase in the number of foreign investors.
The government has been introducing a range of measures to make investment by foreigners more expensive. The latest change is removal of the Capital Gains Tax (CGT) exception completely.
Already, since 2012 foreigners investors have not received the 50% CGT exemption, but assuming the legislation is passed, even Australians who have lived in their home prior to moving overseas will be fully taxed.
The only way to avoid the tax is to move back into the home prior to sale, or sell during the transitional period prior to 30 June 2019. The move will also impact on death so there will be Estate Planning consideration.
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