Australian CGT Changes

[What The]

Copied from the Qrewroom.

I found this in Michael Matusik's newsletter (property guy in Qld)
Just take a look at what Wayne Swan has buried deep in the 2012 Australian federal budget:

The Government will remove the 50% capital gains tax (CGT) discount for non-residents on capital gains accrued after 7.30 pm (AEST) on 8 May 2012. The CGT discount will remain available for capital gains accrued prior to this time where non-residents choose to obtain a market valuation of assets as at 8 May 2012.”

This statement will have great impact on the amount of property bought (and held) by Australian expatriates and other tax non-residents.

The 50% CGTdiscount has previously been available where individuals have held assets for longer than 12 months. The government now intends to withdraw this discount for non-residents, and honour the discount in relation to any existing accrued capital gains ONLY if the non-resident obtains a market valuation for the asset as at May 8, 2012.

We join those few yet to pick up on this change to inform any expatriates and offshore investors with investment properties here in Australia that they need to obtain a market valuation as soon as possible. Failure to do so could be extremely expensive.

And thanks for the heads up Wayne – we got heaps of notice on this one. Many expatriates and offshore investors may (will, more likely) not hear about this change until too late.

[Cravenmorehead]

Fair enough too. a good move.

[twentyyearstoolate]

CMH, you can't be serious!!! Tall poppy syndrome?

The Australian government is just thinking up ways to make more money, and here they do it without fair warning. This Government is just a joke (although most are IMO).

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.” Vladimir Lenin

[grrowler]

And thanks for the heads up Wayne Here's a heads up for Wayne - start dusting off the resume. At least we gave you lots of notice.

[diddly squat]

Just another stab to people trying hard to get ahead. Oh Well, go live down trodden at Rex.... :mad:

Oh forget, they are importing immigrants:ugh::ugh::ugh: now.

[Jack Ranga]

For all you non-resident brothers with CGT assessable assets, don't sell them til you're a resident again! Not that hard is it?

This may go some way to slowing down the wholesale sell-off of our food supply assets??

[TheWholeEnchilada]

For all you non-resident brothers with CGT assessable assets, don't sell them til you're a resident again! Not that hard is it?


Here's the actual article, see if you can pick the flaw in your own argument. Did you really think the politicians were going to leave a loophole that big for Joe Average to abuse - it generally only leaves that only for its "special" friends.

Budget CGT change could be extremely expensive for expat and offshore investors: Michael Matusik
By Michael Matusik
Tuesday, 15 May 2012

Wayne Maxwell Swan, will you just rack off!

Just take a look at what he has buried deep in the 2012 Australian federal budget:

“The government will remove the 50% capital gains tax (CGT) discount for non-residents on capital gains accrued after 7.30 pm (AEST) on 8 May 2012. The CGT discount will remain available for capital gains accrued prior to this time where non-residents choose to obtain a market valuation of assets as at 8 May 2012.”

This statement will have great impact on the amount of property bought (and held) by Australian expatriates and other tax non- residents.

The 50% CGT discount has previously been available where individuals have held assets for longer than 12 months. The government now intends to withdraw this discount for non-residents, and honour the discount in relation to any existing accrued capital gains ONLY if the non-resident obtained a market valuation for the asset as at May 8, 2012.

We join those few yet to pick up on this change to inform any expatriates and offshore investors with investment properties here in Australia that they need to obtain a market valuation as soon as possible. Failure to do so could be extremely expensive.

And thanks for the heads up, Wayne – we got heaps of notice on this one. The practicality is that many expatriates and offshore investors may (will more likely) not hear about this change until too late.

You guys look like you will sacrifice almost anything to achieve a token $1.5 billion surplus in 2012-13.

The latest research from Colliers found that foreign capital investment made up 60% of all investments in Australia's commercial property markets in the first quarter of this year. There was about $2.2 billion worth of foreign investment in Australian non-residential property in the first quarter, well up from $341 million in the same quarter last year.

When it comes to residential property across Queensland, overseas buyers purchased about $400 million last financial year. Most buyers came from China (20%); then followed by South Africa (12%); United Kingdom (10%) and New Zealand (9%). Close to half (47%) the property bought by foreign buyers in Queensland is on the Gold Coast, followed by Brisbane with a 22% market share.

Hmmm, Wayne... just what the Gold Coast needs hey, another good kick in the teeth.

Keep up the good work.

Michael Matusik is the director of independent property advisory Matusik Property Insights. Michael is a 25-year veteran in the industry and his firm has helped over 550 new residential developments come to fruition. Michael has launched a new initiative, called Think Matusik. Think Matusik brings together expert opinion and select property opportunities.


Budget CGT change could be extremely expensive for expat and offshore investors: Michael Matusik (http://www.propertyobserver.com.au/overseas/budget-cgt-change-could-be-extremely-expensive-for-expat-and-offshore-investors-michael-matusik/2012051454689)

[Gnadenburg]

For all you non-resident brothers with CGT assessable assets, don't sell them til you're a resident again! Not that hard is it?

Agreed. Seems simple enough to me.

Valuations are still surprisingly high BTW. I have just had commercial and residential property valued in OZ and I was quite surprised.

It seems ludicrous to me, that a process that MAY net 50 million dollars for the government, could deter investment in the housing sector. Another example where an attempted tax grab at the a perceived wealthy class, will probably affect the Aussie battler, who needs a stable property market, so they can borrowed against the house and buy lots of stuff.

[ivan ellerbai]

Can anyone clarify if this applies to those whom are declared by the ATO to be "non-residents for tax purposes" or to those whom are out-and-out non residents (i.e. a citizen from another country)?
Re the former, I obtained that status from the ATO moons ago but didn't lose my "resident" status.

As for
For all you non-resident brothers with CGT assessable assets, don't sell them til you're a resident again! Not that hard is it?
I'd get proper advice on that. When I was a "non-resident for tax purposes", the family home was subject to CGT assessment for the period that I held that status. As most would know, the family home is generally exempt from CGT. Mind you it was rented.

I'd be concerned that the same mind-set could apply and any capital gains between 8 May and when you return to Australia to become a resident again would lose the concession.