This Bill proposes to remove the capital gains tax (CGT) discount on capital gains accrued after 8 May 2012 for foreign resident and temporary resident individuals. The Bill also makes consequential amendments to ITAA 1997.
Note, however, the CGT discount will still apply to the portion of the discount capital gain of a foreign resident individual that accrued up until 8 May 2012. In particular, the proposed amendments will apportion the discount percentage applied to reduce discount capital gains to ensure that the full 50% CGT discount is only available for periods in which an CGT asset was held:
• prior to 9 May 2012, and
• after 8 May 2012 during which the individual was Australian resident.
This measure applies to disposals of CGT assets after 8 May 2012.
The measure was announced as part of the 2012/13 Federal Budget and the Assistant Treasurer and Minister Assisting for Deregulation’s media release No 026 of 8 May 2012.