Expats living in Australia have
lost a generous tax break which could be used when selling a property. The Australian government is scrapping
a capital gains tax concession which non-resident taxpayers have been able to
use when selling a property in the country.
Non-resident taxpayers previously
enjoyed a 50 per cent capital gains tax (CGT) concession when selling a home in
Australia. However, the Daily Telegraph reports that this perk ââ¬Ëis
to be scrapped by the Australian government, which has backdated the tax grab
to May 8, 2012.ââ¬â¢
Capital gains tax concession to be scrapped on property in Australia
The change to the law means that
if you own an Australian property for more than one year, all profits accruing
after May 8, 2012 to the point of sale will be subject to taxation, rather than
just 50 per cent of the gain.
The Telegraph reports that ââ¬Ëthe tax change is complicated because
expats can still use the 50 per cent concession on any capital gain built up
before the cut-off. However, to do
this they will need to get a certified valuer to obtain an independent market
valuation of the property as at May 8, 2012.ââ¬â¢
Steve Douglas, managing director
of Australasian Taxation Services, said: “Make sure you give your valuer
proper instructions. This is not a conservative bank valuation but rather a
true optimistic assessment of the best value the property is considered to be
worth.
“Be sure your valuer
understands this as it can make a big difference in your future tax
position.”
The change to the capital gains
tax rules is just one of the ways that the Australian government is clamping
down on non-residents with homes in the country. It also plans to scrap the living away from home allowance
(LAFHA) from October 1.
Author: Nick Marr
Homesgofast.com
