The removal of the Main Residence Exemption was passed by the Australian Senate on Thursday 5th December 2019 which will see the Main Residence Exemption entitlement removed for Australian expats.
Australian expats who currently live overseas and own a property that was a former Principle Place of Residence (PPR) will now need to make a decision with regards to the property which could potentially see large tax bills arising if it is your intention to sell the property while overseas.
You now have to decide to sell your property before the 30th of June 2020 to retain either a full or partial entitlement to the Main Residence Exemption or to retain the property until you return to Australia as a resident for tax purposes.
Now that the bill has passed both the lower and upper house we await for it to receive Royal Assent.
Should you wish to discuss in further detail to see how these changes impact you please call an office local to you or send an enquiry via our website.