Yet another sneaky tax grab from sneaky little Swan
From 7.00 PM, May 8, 2013, non-residents of Australia will no longer enjoy the 50 per cent discount on capital gain tax, a tax discount that currently applies to gains earned on taxable Australian property, such as real estate and mining assets.
Moreover, from July 1, 2013 the tax rate on capital gain for non-residents will be adjusted. The first two marginal rates will merge into one rate, aligning with the second marginal rate of residents: 32,5 per cent. This rate will increase to 33 per cent from July 1, 2015.
And one of the side effects?
“Expats have lost a generous tax break which could be used when selling a property,” comments Sean Abreu, Senior Wealth Manager at Mondial. “At the moment I advise non-residents against investment in Australian property.”
For Australian expats who have already purchased property this is bad news, he thinks.
It always is with that goose. It always is.