New Overseas Investors considering buying Australian Property or Australian Businesses will now think twice before invesing here.
As of yesterday the 2012 Federal Budget eliminated the 50 per cent capital gains discount for tax non residents of Australia. In effect this means that all capital gains made by non residents will be fully taxable at non resident rates. Also, the Government increased the non resident tax rates as well! So there is a double whammy!
For current non resident property investors, if they wish to escape this provision they have to get a market valuation of their investments as of yesterday and if they do this, the CGT 50 Per cent exemption will still apply to them.