BDO Submission – Significant changes to capital gains tax for foreign residents – Treasury Consultation
Following the federal government’s announcement in 2024-25 Federal Budget regarding reforms in relation to capital gains tax (CGT) for foreign residents, Treasury released a consultation paper outlining the proposed reforms in further detail.
There are 3 key changes proposed
- The asset base on which foreign residents are subject to CGT is to be broadened
- In determining whether membership interests are subject to CGT, the “principal asset test” will be amended to a 365-day test from the existing “point-in-time test”
- New reporting requirements for foreign residents disposing of membership interests of $A20 million or more, requiring the non-resident vendor to notify the Australian Taxation Office (ATO) of certain CGT events.
In response, BDO has prepared a submission to provide expert feedback on the effectiveness of the proposed changes.
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