Aussie expats becoming potential collateral tax damage
The family home has always been capital gains tax free and still is for residents of Australia but changes are a foot for expats and foreign residents which will require some tax planning advice for those thinking of considering moving abroad..
Michael Pascoe recently wrote an article outlining that If the Hockeys were "normal" expat Australians, Treasurers Scott Morrison would be about to whack them with a surprise $1.1 million capital gains tax bill for selling their family home of 14 years.
Taxing the family home
"Isn't the family home exempt from CGT - it's the most fundamental Australian tax shelter, neither side of politics would be game to touch it."
The CGT exemption is being scrapped for expats. Live in your family home for 30 years, take a job overseas for a couple of years and sign a contract to sell that home while you are a non-resident for tax purposes and you will totally lose the exemption, paying CGT on every dollar the home has appreciated since the day it was purchased.
We don't think that is fair and expect neither do you so be sure to meet with one of our Team to discuss your circumstances to ensure this doesn't happen to you!