Legislation to deny capital gains tax (CGT) exemption on the family home for non-residents has been reintroduced into parliament.
The original measure, which was announced in the 2017-18 budget and received considerable backlash from members of the tax and expat community, due to its retrospective nature, lapsed (no doubt with many sighs of relief) with the calling of the Federal Election. The new bill now essentially denies access to the CGT main residence exemption for non-residents who sell the family home after 30th June 2020.
Under the new bill, individuals who have been foreign residents for a period of six years or less may be able to access the CGT main residence exemption if, during the period of that foreign residency, certain life events occurred.
A life event includes a terminal medical condition to the foreign resident, their spouse or their child under 18 years of age; death; and divorce or separation. Aussies with a non-resident tax status will not doubt be concerned by this bit of news.