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Expats based in Australia will now miss out on a 50% capital gains tax concession on the selling of property after the concession was scrapped by the Australian government.
The concession for capital gains at 50% was enjoyed by all non-residents when selling property and the scrapping of this scheme will be backdated to May 8th.
For any concessions from before this time, expats will need to get an independent market evaluation from a certified valuer as to the market value of the property on the deadline date. All profits accrued after May 8th will be subject to taxation if a property has been owned for more than twelve months.
The extra difficulty placed on expats may mean that many will not make the effort to ascertain a valuation as they will lose out either way.
Tax paid in Australia is credited against tax due in the United Kingdom as the two countries have a double tax agreement but it does mean that tax returns for separate countries have to be filled in.
In addition, the Australian government is planning to scrap the living away from home allowance (LAFHA) from the start of October if individuals maintain a home in Australia that they were not living in.
The federal budget in May had previously outlined the announced change that was originally supposed to be introduced at the start of July but will now not begin until October 1st pending further amendments and time for payroll adjustments.
