Expats could face large capital gains tax bills under proposed laws

Expats face CGT hit on the sale of Aussie family home – Changes that will see more than 100,000 Australians working overseas lose capital gains exemptions on their local homes could encourage artificial behaviour or force prospective expatriates to sell to get around the new rules, tax experts have warned.

Under new laws to be debated in the Senate, the main residence exemption for foreigners will be scrapped.

Critics say the changes are “brutal” because they impose higher tax liabilities on the sale of family homes purchased and lived in by expats before they moved overseas.

It was flagged as a housing affordability measure that was set to hit foreigners and raise $581 million.

But the Federal Government’s May 2017 budget announcement to deny the main residence exemption for Australians who sell their homes while living abroad has some expats worried.

The change, if passed, could hit Australian citizens living overseas for work or family reasons, if they sell their home while living abroad.

Want to know more about how this might affect you or someone you know overseas at the moment, call and speak to Lejo now (08) 94810746.

 

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