The federal government announced in the 2017 Budget that it would remove a capital gains tax (CGT) exemption for around 100,000 expatriate Australians who sell their main residence while overseas. While the measure was projected to raise $581 million over the forward estimates, it has been condemned by tax and legal experts as being “unjustifiably bad policy”, and will discourage Australians who are thinking of going overseas to work.
The government has given non-resident Australians until 30 June to sell their home under existing rules, although legislation to enact the measure is yet to pass into law, whereas Labor has indicated that it may amend the measures if it wins the 2019 election. Expatriates, therefore, are left in a dilemma. Not knowing whether the new laws will come into effect, many are taking the gamble and selling their property anyway at a time when the housing market is in decline. From The AFR:
