In the 2012 Australian Federal Budget, it was announced that the current 50% discount on Capital Gains Tax would be removed for Foreign Individuals.
This will impact the many thousands of Australian expatriates and foreign nationals that own property in Australia and may have a dire consequence on the construction industry if there is a contraction of buyer activity as a result of the higher Capital Gains tax cost.
We have prepared a submission to seek the Government to change its position on this and are asking for your support on this important issue.
If the changes come into effect, they will only apply to gains after the 8th may 2012. Profits before the date will continue to enjoy the 50% discount on Capital Gains.
For more information connect with me at: Steve Douglas on TaxConnections
After starting my career with Ernst & Young in 1985 I established a private practice in 1989 in Albany, Western Australia. After relcoating to Perth in 1995, we began operating Australasian Taxation Services in Singapore attending to the needs of foreign investors into Australian property and then subsequently Australian expatriates working and living abroad.
This grew over the years from humble beginnings in Singapore to now spread worldwide with offices in Perth, Singapore, Hong Kong, Dubai, London, Kuala Lumpur and New York.
I wrote the book “The Aussie Expat – The Luckiest Person on Earth” and enjoy travelling the world to visit our clients in all corners and ensure they have access to professional, sincere and up to date service and information to help them in their financial affairs.
1 comment on “Australian Government Seeks to Increase Capital Gains Tax on Expats and Foreigners”
Here is a link to current information on this issue published on the ATO web site.
http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/00325402.htm&pc=001/005/054/002/008&mnu=0&mfp=&st=&cy=
Submissions regarding the drafting of the proposed legislation are to be submitted by 5 April 2013 ie this coming Friday.
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