Australia’s non-resident CGT changes: a long awaited, but unwelcome, update for foreign investors

The 2024-25 Federal Budget contained a somewhat vague (but relatively modest) announcement of a ‘clarification and broadening’ of the classes of assets in respect of which non-residents would be subject to Australian capital gains tax. This involved moving from the current ‘real property’ based test to include assets with a ‘close economic connection’ to Australian land, along with changes to the principal asset test. In addition, there would be a new process for ATO involvement in relation to... By: Herbert Smith Freehills Kramer