The CGT discount was available to foreign resident individual on taxable Australian property.
What has changed?
From 8 May 2012, foreign or temporary resident individuals must meet certain eligibility conditions to apply the CGT discount.
It depends on:
• whether the CGT asset was held before or after 8 May 2012, and
• the residency status of the individual who has capital gain.
Who is affected?
The change will affects individuals, beneficiary of a trust and a partner in partnership, who are:
• a foreign or temporary resident
• an Australian resident with a period of foreign residency after that date
• has a discount capital gain from a CGT event that occurred after 8 May 2012.
How do the changes affect foreign or temporary residents?
If you are a foreign or temporary resident individual and, after 8 May 2012, you have a discount capital gain from CGT event.
If you were a foreign or temporary resident on 8 May 2012, you may wish to get a market value for the CGT asset as at 8 May 2012 and use a market value calculation. This will apportion the CGT discount to take into account the capital gain you have that was accrued before 8 May 2012.
How do the changes affect Australian residents?
Australian resident should calculate the CGT discount you can apply to the capital gain you have if you are an Australian resident and , after 8 May 2012, you have:
• a capital gain from a CGT event, and
• a period of foreign or temporary residency.
The period of foreign or temporary residency after 8 May 2012 is taken into account when calculating the CGT discount you can apply to your capital gain.