Just another greedy tax grab by another greedy Western government
The issue here is that all normal Aussies, living in Australia do NOT pay any CGT when selling their primary residence. They only pay it when selling investments. In the case of Australian expats living overseas, they have been able to class their home back in Aus as a place of primary residence while living overseas, even if renting it out as an investment whilst they are overseas, therefore have been able to get the exemption that normal Aussies get. Now they won't.
I knew about these upcoming changes for a while but has never bothered me because I've not had any intention to sell any of my Aussie properties.
Just as a side note, another trick some Aussies do when they flip properties and renovate it, buy it, live in it for 6 months while renovating, sell it, dont have to pay CGT because its their primary residence. Then move onto the next one, you can continually buy and sell properties like this and never pay any capital gains taxes as long as you live in it for at least 6 months. So you can do 2 properties a year, make a living out of this and don't pay any CGT.
I'll be buying a property in aus pretty soon and rent out my hk one. On the basis of the above clause , I should be able to treat my HK property as main residence for cgt purposes , if that happens and I meet their conditions. Meanwhile my aus property will be subject to cgt when it happens. Does that sound right?
Last edited by Jaz Paul; 27-02-2020 at 04:53 PM.