Professionals Logan Lifestyles
20 Commerce Drive Browns Plains
07 3800 4000
Professionals Logan Lifestyles Realty
20 Commerce Drive Browns Plains Sales and Rentals
07 3809 4495Contact us
New Rules about Capital Gains Tax (CGT)
For the average Australian resident owning and living in their home, CGT is never an issue as the property is exempt from the tax where it is bought, occupied by the buyer as a home, and later sold on at a capital profit. There are many conditions and qualifications, but this is the general rule. The exemption is not available to a foreign resident selling Australian property.
Commencing 1st July 2016 every Australian resident selling property worth more than two million dollars ($2m) must get an Australian Taxation Office (ATO) “exemption certificate” saying that the property is exempt from the tax. The ATO test for a resident does not depend on citizenship, it depends on where you live.
If you cannot produce the certificate to the buyer prior to settlement, then the buyer has to retain ten percent (10%) of the sale price and pay it to the ATO. It is held there until liability of the vendor is finalized.
The change has been ‘on the way’ for some years, and arises because of poor compliance with the GST rules by non-residents. So it’s an extra bureaucratic step you must take when you sell.
If you’re selling, it’s important that you get appropriate professional advice from your solicitor, conveyancer or accountant before listing a property for sale.
At Professionals Logan Lifestyles we are expert in all aspects of real estate, especially marketing, selling and advice on purchasing. If I can be of assistance in helping you to buy or sell or if you have any questions, feel free to phone or to call into our friendly offices at Browns Plains for prompt attention.