Draft legislation has been released to implement 2017–2018 Federal Budget measures relating to the CGT liability of foreign residents.

The measures, which have applied since May 9th 2017, firstly remove the entitlement to the CGT main residence exemption (MRE) for foreign residents who have dwellings that qualify as their main residence.

And secondly, ensure that for the purpose of determining whether an entity’s underlying value is principally derived from taxable Australian real property (TARP), the principal asset test is applied on an associate inclusive basis.

For more information, please contact Custom Accounting.