Foreign investors may lose CGT discount
Foreign investors may lose CGT discount
Posted on Friday, March 08 2013 at 4:44 PM
A plan to remove the 50 per cent capital gains tax (CGT) discount for non-resident property investors is progressing.
A plan to remove the 50 per cent capital
gains tax (CGT) discount for non-resident property investors is progressing.
The Federal Government today released draft
legislation for public consultation, following its announcement in the 2012-13
Budget of plans to scrap the perk.
Assistant Treasurer David Bradbury says the
discount isn’t necessary to attract foreign investment.
If the change takes effect, non-residents
will be entitled to claim a discount on capital gains accrued prior to May 8, 2012.
The asset must be valued as at that day.
The loss of discount would also apply to
the sale of other property such as mining assets. The government expects the
plan will save them $55 million over the forward estimates period.
Nexia Australia managing partner Ian Stone
says the change would have “significant financial implications” for foreign
investors.
Stone believes foreign investors have been
given little time to consider the change and many will suffer as a result.
Consultation on the draft legislation will close
on April 5.
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