The Australian Treasury launched a public consultation on strengthening the foreign resident capital gains tax regime on 23 July, 2024. Comments to this consultation can be submitted until 20 August, 2024.
The government announced a measure in the 2024–25 Budget to strengthen the foreign resident capital gains tax regime. This measure comprises three complementary elements to ensure that Australia can tax foreign residents on direct and indirect disposals of assets with a close economic connection to Australian land and natural resources.
The measure will also improve certainty for foreign investors on their Australian tax outcomes, by aligning Australia’s tax law more closely with the Organisation for Economic Co-operation and Development’s Model Tax Convention on Income and on Capital. The measure also aligns the treatment for non-residents more closely with the tax treatment that already applies to Australian residents.
The amendments apply to capital gains tax events commencing on or after 1 July, 2025.
This consultation paper is seeking stakeholder views on specific implementation details of the Budget announcement. Following consideration of responses to this consultation paper, the government will issue and consult further on exposure draft legislation prior to introducing any legislation into parliament.
