AustCham Korea requests postponement of Capital Gains Tax.
Australian property owners living overseas have until the end of June 2020 to sell their homes if they want to avoid substantial Capital Gains Tax (CGT) fees.
In light of the COVID-19 outbreak, on the 24th of March, the Prime Minister announced new social distancing restrictions on various activities including a ban on live public auctions and open homes. This makes it near impossible for expats to dispose of their family home before the new CGT measures come into effect.
For decades, Australians living abroad have been able to claim the CGT exemption on their family home. This exemption was available so long as the home was rented out for no more than six years at a time. But in early December 2019, the Australian Federal Government finally passed through the Senate its $AUD581 million plan to change CGT arrangements for people living abroad.
The new law eliminates the CGT exemption for Australian expatriates that has been in place since September 20, 1985.
As a result of these changes, potentially thousands of Australians will be hit with a capital gains tax if they sold their property while a resident overseas, with the tax bill dating back from the time the owner purchased their home, not the point at which they moved overseas.
Working with the AustCham network throughout Asia, the Chamber has written to the Treasurer, The Hon. Josh Frydenberg MP, requesting the government to consider extending the deadline for implementation from June 30, 2020 to June 30, 2021.
Click here to read the full letter.
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