In the past, foreign residents (e.g. holding a student visa or working visa) did not need to pay capital gains tax (CGT) on the disposal of their principal place of residence (their home/main residence) in Australia.

Now, the government will remove the entitlement to the CGT main residence exemption for foreign residents that have dwellings that qualify as their main residence from 9 May 2017. Therefore any such capital gain or loss arising upon disposal of a foreign resident’s main residence will need to be recognised.

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