Capital gains threat revived for Australian expats

A zombie tax measure designed to crack down on capital gains tax exemptions for Australian expats has come back to life in the wake of Scott Morrison’s election win.

The $581 million plan to remove the tax exemption for Australians who sold their main residence while living and working abroad could result in the retrospective denial of the exemption as far back as September 20, 1985 – when the capital gains tax started.

“Our position hasn’t changed. Our policy remains as it was pre-election,” Mr Frydenberg told The Australian Financial Review.

Changes to the law for properties sold after June 30 this year sparked uncertainty and selling by Australians overseas, amid concerns taxpayers receiving property in divorce settlements could be caught out.

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