Business advice
and accounting

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Your partners for Business Service and Advisory, Taxation, Audit, Business Valuation, Forensic Accounting and Business Valuation Services.

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

We are always looking for ways to engage and give back to our community.

Telephone: +612 9283 1666
Email: admin@esvgroup.com

Level 13, 68 York Street,
Sydney NSW 2000

Why us

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

What we do

Your partners for Business Service and Advisory, Taxation, Audit, Business Valuation, Forensic Accounting and Business Valuation Services.

Who do we help

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

Work with us

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

What we think

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

Working to give back

We are always looking for ways to engage and give back to our community.

Contact us

Telephone: +612 9283 1666
Email: admin@esvgroup.com

Level 13, 68 York Street,
Sydney NSW 2000

Main Residence Exemption and Non-Residents

25 March 2019

by David Prichard

Non-residents may be able to breathe a sigh of relief as the widely reported changes to the main residence exemption may not be proceeding after all. The measures to change the rules announced in the 2017-18 Federal Budget have been caught up in the political turmoil in Canberra sand the governments reliance on other parties to pass legislation through the Senate.

The main changes proposed were expected to impact a variety number of situations including:

  • Individuals who are foreign residents at the time a CGT on their main residence.
  • Trustees of a deceased who was a foreign resident at the time of death.

The above are the two most common scenarios under which the previously eligible disposal would no longer receive the concessional treatment of the main residence exemption either in totality or a proportion of the exemption.

The law was proposed to apply to CGT events that happen on or after 7.30pm on 9 May 2017 with a transitional rule applying until 30 June 2019 for properties held by non-residents as a 9 May 2017.

With the proposed start date for the new law fast approaching combined with a variety of technical issues with the law and the upcoming Federal Election, the government do not appear to be willing or able to force through the legislative change.

The legislation passed the House of Representatives on 1 March, however, has been stuck in the Senate since then.  With the Senate only sitting for 2 days in the next month, it is widely tipped that the Federal election will be called resulting in the discontinuance of the session. The precursor to the calling of the Federal election will be the Federal Budget which has been brought forward to early April and is expected to be a strong pre-election budget.  The government could also use the upcoming Federal budget to restate its intention relating to the law change and reinvigorate the process.

If you have any questions on the proposed changes and your current situation or your capital gains tax position generally, please do not hesitate to get in touch with your engagement partner on 02 9283 1666.