Capital Gains Tax changes for foreign residents

The 50% CGT discount no longer applies to foreign residents who make a capital gain on taxable Australian property. This change became law on 29 June 2013.

Foreign or temporary resident individuals must meet certain eligibility conditions to apply the CGT discount. From 8 May 2012, the application of the 50% CGT discount will depend on:

• Whether the CGT asset was held before or after 8 May 2012, and
• The residency status of the individual who has the capital gain, namely:
  • Foreign or temporary residents
  • Australian residents with a period of foreign residency after 8 May 2012

The ATO has a CGT discount worksheet to help affected people work out their CGT discount percentage.

You can read more about the changes on the ATO website.