Capital gains tax (Capital gains tax):
When assets, properties and stocks are sold, there is a difference between the price paid at the time of purchase and the price now processed, known as Capital gain or Capital loss. Taxpayers need to be reflected in that year's income tax return.
Generally speaking, your main residence (home) is exempt from capital gains. Of course, if the property is habitable and you need to live in it. The two properties cannot be regarded as the main place of residence at the same time.
ATO describes the primary place of residence:
Does the taxpayer and his family live in the property
Whether the taxpayer's personal life or household goods are stored in the property
Whether the property address is the taxpayer's mailing address
Has the water, electricity and gas of the property been connected and used
Of course, what is said above cannot be used to judge the main residence alone, and ATO will also consider the time of residence as well as other special cases.
When property is sold, property owners who belong to non-Australian tax-paying residents will not be exempted from capital gains tax, according to a proposal for tax reform in the 2017-2018 federal budget.
At the same time, once the proposal becomes law, non-Australian taxpaying residents will not be exempt from capital gains tax unless:
Major properties that were purchased before 7:30 on May 9, 2017 and sold before 30 people in June 2019 were exempt from capital gains tax, and property sold after that date could not be exempted from capital gains tax.
Property purchased after 7:30 on 9 May 2017 is also not eligible for exemption.
If you are interested in buying or selling properties in Australia, please seek professional tax planning advice as soon as possible to distinguish the tax differences between different properties.
