The Australian Treasury has launched a public consultation on draft legislation to strengthen the foreign resident capital gains tax (CGT) regime, covering two bills that clarify CGT scope, real property definitions, and introduce transitional relief for renewable energy assets. The consultation is open until 24 April 2026.
The Australian Treasury launched a public consultation on 10 April 2026 covering draft legislation aimed at strengthening the foreign resident capital gains tax (CGT) regime.
The consultation covers two draft bills: the Treasury Laws Amendment Bill 2026: Strengthening the foreign resident CGT regime and the Treasury Laws Amendment Bill 2026: Renewable energy asset discount capital gains for foreign residents, along with their explanatory materials.
According to the consultation paper, the reforms are intended to ensure foreign residents pay their fair share of tax in Australia and to provide clearer guidance on the application of the CGT rules for foreign investors. The measures build on initiatives announced in the 2024–25 Budget and feedback received during public consultation held between July and August 2024.
The draft legislation seeks to clarify which assets are subject to CGT for foreign residents and refine the scope of what constitutes real property, with certain changes applying retrospectively from 2006. It also proposes transitional relief until 2030 for the sale of renewable energy assets through a 50% CGT discount.
The consultation is open until 24 April 2026.
