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An analysis from Corrs Chambers Westgarth, Taxand Australia
The Australian Government recently introduced a Bill into Parliament to amend the foreign resident capital gains tax (CGT) regime. The Bill implements changes first announced in the 2024-25 Federal Budget, including the removal to apply the rules retrospectively to transactions dating back to 2006. The move addresses one of the biggest concerns raised during consultation and provides greater certainty for foreign investors.
However, the broader reforms remain largely intact. The legislation expands the range of assets and investments that may be subject to Australian CGT, meaning some existing investments that were previously outside the tax net could become taxable once the new regime takes effect.
While the removal of retrospectivity is welcome, foreign investors should not view the changes as a softening of policy. Businesses with Australian assets or investment structures should review their exposure now, as the expanded rules are expected to apply from the first quarter following Royal Assent.
Luke Imbriano, Cameron Blackwood, Angelina Lagana, Simon Clark, Nathan Unitt, and Matthew Ku from our member firm Corrs Chambers Westgarth, analyse the key differences between the Bill as introduced and the impact for foreign investors and businesses with Australian assets, which you can read here.
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