Announced last month in May, the Australian Federal Budget contains a number of changes that will affect foreign investors in the future.
The majority of changes in the latest Federal Budget focus on Capital Gains Tax (CGT), limitations on foreign investments and clarification of Australia’s foreign investment framework.
- Capital Gains Tax (CGT) changes for foreign investors
Effective immediately, the Government will no longer allow foreign and temporary tax residents an exemption on paying CGT on their main residence.
However, all existing properties purchased prior to 9 May 2017 will also have their CGT exemption removed by 30 June 2019.