British professionals moving to Australia will no longer be able to make use of a tax break that expats have enjoyed when selling a property.
It was the case that foreigners were able to benefit from a generous 50 per cent capital gains tax concession when they decided to sell their Australian home, the Daily Telegraph reported.
Under new rules established by the Australian government, all profits will now be taxable on properties that have been under ownership for more than a year. It has been backdated to May 8th of this year.
However, expats who so desire to sell their property can still benefit from any capital gains that have been built up before this new cut-off date. The government stipulates that a certified valuer must be used to value the property.
“Make sure you give your valuer proper instructions,” Steve Douglas, managing director of Australasian Taxation Services, was quoted by the newspaper as saying. “This is not a conservative bank valuation but rather a true optimistic assessment of the best value the property is considered to be worth.”
Australia has a similar tax system to the UK, with its PAYG (Pay As You Go) arrangement the equivalent to PAYE (Pay As You Earn).
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