Can people on temporary visa that are considered Australian tax residents claim the 50% CGT discount. I read the ATOs website and it says foreign residents cannot for Australia property.
What about shares?
Am I a foreign residents for this?
Can Temporary Residents Claim The CGT Discount?
deme on 04/02/2021 - 00:30
Comments
https://www.ato.gov.au/general/capital-gains-tax/internation…
Shares are asset, so that will be included.
Seems like if you have had the property since the date on the ato, you may be safe. But there is a calculator you can use to see what may apply to you.
The definition of foreign and temporary resident for ATO purposes is not the same as for immigration/visa purposes, you can be an Australian citizen and be considered a foreign tax resident and you can be here on a temporary visa and still be considered an Australian resident for tax purposes. You just go through the usual tax resident criteria to figure out if you are a tax resident or not:
https://www.ato.gov.au/Individuals/international-tax-for-ind…Thanks!
I also called the ATO just then who said the same thing, that for CGT its tax residency.
Yes, that is the best ATO can advise you over the phone. You have to make your own self assessment. However if you are still unsure, you can apply for a private tax ruling, by yourself or with the help with a tax lawyer.
If you are a temporary resident (e.g. hold a temporary visa and live permanently in Australia, 6+ months), you are eligible for the CGT discount on Australian property.
You however are not subject to CGT on the sale of ‘non Australian taxable property’ which is most shares, even on the ASX. Hence, you don’t need to worry about the CGT discount because the gain is tax free in Australia.
This doesn't seem correct 183 day test means you'd be an Australian resident for tax, subject to CGT.
Sksksk is correct, there are special treatments for temporary residents, basically, temporary residents have the same CGT treatment as non-tax/foreign residents (i.e. not subject to CGT for non-taxable Australian property).
For more information, you can have a look ATO website.
Oh nice, shame though I dont qualify due to:
do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991.
are you talking to yourself?