CGT Reform for Expats and Foreign Residents: How the 1 July 2027 Changes Apply if You Live Overseas

General information only. This is not tax or financial advice. Cross-border CGT involves Australian law, foreign tax law, and tax treaty interpretation — consult a registered tax agent familiar with your country of residence before acting.

The CGT reform is now law — passed 25 June 2026, royal assent 26 June 2026 (Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Act No. 49 of 2026, plus companion rates Act No. 50 of 2026) — and it does not spare people living overseas. From 1 July 2027, the 50% discount is abolished for everyone, and Australian assets held across the changeover get the same deemed-sale split as residents’ assets. But there is one crucial asymmetry in the final legislation: foreign and temporary residents are excluded from the new CPI cost base indexation. Residents lose the discount but gain indexation; foreign residents — who already lost the discount back in 2012 — get neither. Their post-1 July 2027 gains are taxed on the full nominal amount at non-resident rates.

But the reform sits on top of several pre-existing foreign-resident rules that have nothing to do with the discount. The combined effect is what matters:

1. Foreign-resident denial of the main residence exemption (since 12 December 2019) — your former home in Sydney is fully taxable if you sell while a foreign resident.
2. 15% foreign resident CGT withholding (FRCGW) on Australian property sales — collected at settlement unless a clearance certificate or variation is in place. Threshold removed from 1 January 2025; applies to all property values.
3. Tax treaty residency tie-breakers — for Australian property, most treaties give Australia primary taxing rights regardless. For shares, treaty position varies.
4. Foreign tax credits in your country of residence — usually claimable on the Australian tax paid, but capped at the foreign-country liability on the same gain.

This article walks through how the 1 July 2027 reform stacks with each of those pre-existing rules.

The short version

Live overseas? The CGT reform still applies to your Australian assets — same deemed-sale split at 1 July 2027, same 30% minimum framework — but without the indexation that residents get on post-reform gains.

If you’re a foreign resident selling Australian property, you’ve already lost the main residence exemption since 2019 and the 50% discount on your foreign-resident accrual periods since 2012. The reform removes the residual discount on the post-1 July 2027 portion and gives you no indexation in exchange. Plus 15% withholding continues at settlement.

The practical upshot: for gains accrued entirely as a foreign resident, the reform changes surprisingly little — you were already taxed on the full nominal gain at non-resident rates, and you still are. For Australian-tax-resident expats (Group 1 below), the reform works exactly as it does for any resident: discount out, indexation in, 30% floor.

Three groups affected (and how the rules differ)

The reform plus the pre-existing rules apply differently across three taxpayer groups. Where you sit depends on your tax residency at the date of the CGT event (usually contract date for property), not your citizenship.

The first group keeps every discount, exemption and bracket an Australian resident has. The reform hits them exactly as it hits any resident. The second and third groups face the reform stacked with the foreign-resident regime — which is where the combined impact gets meaningful.

The hardest cases sit on the boundary. Tax residency for individuals is determined by the four ATO tests (resides test, domicile test, 183-day test, Commonwealth superannuation test) — none of which is bright-line. A taxpayer who is “out of Australia” for 18 months but still owns the family home, sends school fees to the kids in Sydney and intends to return is usually still a tax resident. A taxpayer who sold the Sydney house, packed the family up, signed a 4-year contract overseas and started paying tax in the destination country is usually not. Get this nailed down with a tax agent before any disposal — the reform makes the answer materially more expensive.

Timeline — when each change takes effect

The reform dates apply equally to expats and foreign residents. The pre-existing FRCGW and main-residence-denial rules run in parallel.

The key practical date for any expat or foreign-resident vendor is still 30 June 2027 for sales already in the pipeline. After that, the reform applies regardless of where you live.

How time changes your tax bill — the expat angle

The same two timing levers that drive resident outcomes drive foreign-resident outcomes — how the gain splits at 1 July 2027 and years past 1 July 2027 at disposal. What changes for foreign residents is the downstream treatment: no discount on foreign-resident accrual periods (2012 rule) and no indexation on the reform portion at all.

Holding-period split — same split, different downstream rate

The split is set by the asset’s market value at 1 July 2027 (deemed-sale transition), or an electable apportioning method. Assuming steady growth — roughly what the apportioning election produces — an asset bought on 1 July 2022 and sold after 1 July 2027 splits like this:

For a foreign-resident vendor with a 10-year hold (5 yrs pre + 5 yrs post 1 July 2027), the gain splits roughly 50/50 — half taxed under legacy rules (where the 50% discount applies only to any resident accrual periods under the 8 May 2012 apportionment), half taxed under reform rules (full nominal gain, no indexation).

Foreign residents who became Australian non-residents BEFORE 12 December 2019 had a transitional grandfathering window (sales settled by 30 June 2020 could still claim the main residence exemption on a former home). That window closed long ago. Foreign-resident main-residence treatment from 2020 onward is denial.

Indexation — residents only

The CPI uplift table from the master article applies to Australian tax residents (including Group 1 expats who remain residents). At 2.5%/yr assumed CPI, a resident’s reform-portion cost base is uplifted by:

Foreign and temporary residents get none of this. The final legislation excludes them from cost base indexation — consistent with the 2012 decision that excluded them from the discount. A foreign-resident vendor’s post-1 July 2027 gain is the full nominal amount: sale proceeds minus the (un-indexed) 1 July 2027 value. This is the single most important difference between the Budget-era commentary (which implied the same indexation for everyone) and the Act as passed.

The 30% minimum doesn’t bind the same way

For Australian residents, the 30% minimum tax is a binding floor for taxpayers whose marginal rate would otherwise drop below 30% on the reform portion — typically retirees or low-income earners.

For foreign residents, the 30% minimum is largely inert. Australia’s non-resident brackets start at 30% from the first dollar of taxable Australian income. There’s no $18,200 tax-free threshold and no 16% or 19% bracket. So the minimum is already met before it could “bind”. The reform portion of a foreign resident’s gain is taxed at 30% if their total Australian taxable income falls within the 30% bracket (up to $135k), then 37% above that, then 45% above $190k.

For Australian expats who remain AU tax residents (smaller group), the 30% minimum behaves the same as for any AU resident — it bites if your marginal rate would otherwise have been under 30%.

Four sensitivity scenarios for typical expat archetypes

Gain $400,000 nominal on a 10-year hold straddling 1 July 2027 (5 yrs pre, 5 yrs post). 2.5% CPI. Compare old rules (50% discount, foreign-resident no-discount where applicable) vs reform (deemed-sale split; indexation for residents only).

The counterintuitive result: for gains accrued entirely as a foreign resident, the reform changes nothing. Those taxpayers were already taxed on the full nominal gain at non-resident rates — the discount was denied to them in 2012, and the Senate’s final design denies them the replacement indexation too. The Budget-era commentary suggested indexation would give foreign residents modest relief; the Act as passed did not deliver it.

Where the reform DOES move the needle for internationally mobile taxpayers:

• Mixed-residency holds — resident accrual periods lose the 50% discount on post-2027 growth (and gain indexation instead, but only while you’re a resident at disposal).
• Australian-resident expats (Group 1) — full resident treatment: discount out, indexation in, 30% floor if your marginal rate is low.
• Pre-1985 assets — previously wholly exempt, now taxable on post-2027 growth (see worked example 4) — with no indexation if you’re a foreign resident at sale.

The math is non-trivial. Run actual numbers in the CGT calculator.

Three-bucket transition for expats

The standard A/B/C bucket structure from the master article applies, with foreign-resident specifics overlaid:

The 8 May 2012 rule pre-dates this reform and is easy to miss: since that date, foreign residents have lost the 50% discount on gains accruing during their foreign-resident periods, even pre-reform. So the “legacy” side of the split treatment for a long-time foreign resident is often already at a non-discounted base.

Foreign-resident-specific rules that continue (not changed by reform)

These rules are independent of the discount reform and continue unchanged. The new rules layer on top of them.

Main residence exemption — denied since 12 December 2019

If you are a foreign resident at the date of the CGT event (typically contract date) and you sell your former main residence, the exemption is fully denied. There is a narrow life-events exception (terminal medical condition, death of spouse/child, divorce involving the property, compulsory acquisition) within six years of becoming a foreign resident. If the exception doesn’t apply, the full gain is assessable.

This rule was unchanged by the reform. The new rules sit on top of it — your former home is fully taxable, with the pre-2027 gain following the old (8 May 2012-apportioned) discount rules via the deemed sale, and the post-2027 gain taxed on the full nominal amount with no indexation if you’re a foreign resident at sale.

Full background in Selling Your Home as an Expat: The Main Residence Exemption Trap.

Non-resident brackets — no tax-free threshold

Australian non-resident tax brackets (2027-28 settings):

There is no $18,200 tax-free threshold and no 16% or 30% transitional bracket. A capital gain of $300,000 to a foreign resident with no other Australian income is taxed at 30% on the first $135k, 37% on the next $55k, and 45% on the balance — total around $89,950 before the discount/indexation analysis. This base structure makes the 30% minimum tax inert for most foreign residents (already met) but doesn’t reduce the absolute Australian liability.

15% FRCGW continues unchanged

The foreign resident capital gains withholding (FRCGW) regime is separate from the discount reform. Key parameters since 1 January 2025:

• Rate: 15% of the gross sale price (not the gain)
• Threshold: None — applies to all property sales regardless of value
• Mechanism: Buyer withholds at settlement, remits to ATO the next day, vendor claims credit in their tax return
• Australian-resident vendors: Apply for a free clearance certificate from the ATO at least 28 days before settlement to avoid withholding entirely
• Foreign-resident vendors: Apply for a variation if expected actual liability is materially below 15% — otherwise wear the cashflow until refund at lodgement

Full mechanics in Foreign Resident CGT Withholding: 15% Rate From 1 January 2025.

Tax treaty positions

Most Australian double tax agreements (DTAs) follow OECD model Article 13 (Capital Gains):

• Real property situated in Australia — Australia has primary taxing rights. The foreign-resident country provides a foreign tax credit for the Australian tax paid (capped at the foreign-country liability on the same gain). For property sales, the treaty rarely reduces Australian tax — it shifts who carries the residual cost.
• Shares in Australian companies — varies. Some DTAs (US, UK, Singapore) give the residence country primary taxing rights on share gains, exempting Australia. Others (China, India) preserve Australian taxing rights on shares in “land-rich” Australian companies.
• No DTA exists — Australia taxes under domestic law without relief. Hong Kong is the prominent example; the China-Australia DTA does not extend to Hong Kong residents.

This article isn’t a treaty interpretation guide. Get a written treaty position from a tax agent with international expertise before any cross-border disposal.

Worked example 1 — Australian expat selling Sydney apartment

Jenny, dual Australian/UK citizen, working in London since 2020, sold her Surry Hills investment unit on 1 July 2030.

Legacy portion: $424,000, calculated under old law via the Subdiv 112-E deemed sale and deferred to the actual 2030 sale.

• 8 May 2012 rule: Jenny was a foreign resident for the entire period since 2020. The pre-2020 accrual (2015–2020, ~33% of the legacy period) attracts the 50% discount; the 2020–2027 accrual does not.
• Roughly: $424k × 33% × 50% discount = $70k taxable on the pre-2020 sub-portion. The post-2020 sub-portion ($424k × 67% = $284k) is fully taxable. Total legacy taxable ≈ $354k.

Reform portion: $106,000 — and because Jenny is a foreign resident at the CGT event, no CPI indexation applies. The full nominal $106,000 is assessable. The 30% minimum is inert for her (foreign resident, base rate 30%).

Total Australian assessable gain: ≈ $354k + $106k = $460,000.

Australian tax at non-resident brackets (treating the gain as the only AU income):

• $0–$135k @ 30% = $40,500
• $135k–$190k @ 37% = $20,350
• $190k–$460k @ 45% = $121,500
• Total: ~$182,400

Compare with old rules: all $530k under old rules with 115-C apportionment (discount only on the pre-2020 accrual, ~33%): taxable ≈ $530k × 67% + $530k × 33% × 50% = $355k + $87k = $442k. Tax at non-resident brackets ≈ $174,500. Reform adds roughly $7,900 to her bill — she loses the residual discount on the post-2027 slice of her pre-2020-style entitlement and, as a foreign resident, gets no indexation to offset it.

FRCGW at settlement: 15% × $1,150,000 = $172,500 withheld by the buyer. Since Jenny’s actual liability is ~$182,400, she’ll owe ~$9,900 more on assessment.

UK foreign tax credit: Jenny lodges in the UK as a UK tax resident. HMRC charges UK CGT on the same gain at 28% (residential rate post-Autumn Budget 2024 adjustments). She claims foreign tax credit for the AU tax paid, capped at the UK liability on the same gain. Net foreign-country residual depends on the treaty position — the AU-UK DTA gives Australia primary taxing rights on Australian real property, so HMRC offsets the AU tax.

Worked example 2 — Foreign-resident investor buying post-reform

Wei, Hong Kong resident, buys a Brisbane apartment as an investment on 1 January 2028 for $720,000. Sells 1 January 2034 for $1,150,000.

Assessable gain: $1,150,000 − $720,000 = $430,000 — the full nominal gain. As a foreign resident, Wei gets no CPI indexation on his cost base.

Tax position:

• No 50% discount available (foreign resident — and abolished for everyone from 1 July 2027 anyway).
• No indexation (foreign residents excluded under the final legislation).
• No 30% minimum binding (non-resident base rate is already 30%).
• No DTA (Hong Kong not covered by China-Australia treaty for Hong Kong residents).
• All $430,000 taxed at non-resident brackets:
  • $0–$135k @ 30% = $40,500
  • $135k–$190k @ 37% = $20,350
  • $190k–$430,000 @ 45% = $108,000
  • Total: ~$168,850

FRCGW at settlement: 15% × $1,150,000 = $172,500 withheld. Wei is roughly square with his actual liability — a variation application saves little here.

Compare with old rules estimate: under the pre-reform regime, the 50% discount was denied to foreign residents anyway (8 May 2012 rule), so the full $430,000 nominal gain would have been taxed at non-resident brackets — the same ~$168,850. The reform changes nothing for Wei. The Budget-era commentary suggested indexation would give post-2027 foreign-resident buyers real relief; the Senate’s final design excluded them, so the status quo simply continues. (Had Wei bought an eligible brand-new dwelling, the new-dwelling 50% discount choice interacts with the 2012 foreign-resident denial — specialist advice needed before assuming any benefit.)

Worked example 3 — Returning Australian selling overseas-acquired property

Mark moved to Singapore in 2020, becoming a Singapore tax resident (Australian foreign resident). He bought a Sydney investment unit in 2024 for $750,000 while still a foreign resident. He returns to Australia in 2028, re-establishing Australian tax residency. He sells the unit on 1 January 2031 for $1,050,000.

Legacy portion: $150,000 under the deemed-sale transition.

• For the entire 2024–2027 legacy period Mark was a foreign resident — the 8 May 2012 rule denies the 50% discount on the whole legacy portion.
• Legacy taxable: $150,000 (no discount), deferred to the actual 2031 sale.

Reform portion: Mark is an Australian resident at the CGT event, so CPI indexation applies to the reacquired $900,000 cost base. CPI factor for 3.5 years at 2.5% ≈ 1.090 → indexed cost base ≈ $981,000. Real reform gain = $1,050,000 − $981,000 ≈ $69,000. (How indexation interacts with his part-year foreign residency inside the post-2027 window — he didn’t return until 2028 — is one of the apportionment details awaiting ATO guidance; the figures here assume full resident treatment at disposal.)

Total Australian assessable gain: $150,000 + $69,000 = $219,000.

Tax at resident brackets (assume Mark has $130,000 salary in 2030-31; gain added on top): the gain pushes him into 37% and 45% portions.

• Marginal slice on the gain: roughly $5k @ 30% + $55k @ 37% + $159k @ 45% = $1,500 + $20,350 + $71,550 = ~$93,400 Australian tax.

Compare with old rules estimate: the entire $300k nominal gain with 115-C apportionment — no discount on the 2024–2027 accrual (foreign resident), 50% discount on the 2028–2031 accrual (resident again). Roughly $150k × 100% + $150k × 50% = $225k taxable. At marginal rates on top of $130k salary ≈ $96,100. The reform is roughly a wash for Mark (~$2,700 less) — at his unit’s modest ~4%/yr post-2027 growth, resident indexation shelters slightly more than the 50% discount would have.

The lesson: returning Australians who bought property as foreign residents face an unusual interaction — the 8 May 2012 discount denial on the pre-2027 accrual plus the reform on the post-2027 portion, where residency at disposal decides whether you get indexation at all. Time the sale carefully against expected residency status.

Worked example 4 — Pre-1985 asset held by foreign resident

Margaret, UK citizen and resident, inherited her Australian uncle’s Adelaide rural land in 2010. The land was purchased by her uncle in 1979 for $50,000, so it is a pre-CGT asset. Margaret sells the land on 1 January 2030 for $1,200,000.

Pre-1 July 2027 portion: under the old rules, a pre-CGT asset would have been entirely exempt from CGT. Under the reform as legislated, pre-1985 assets become subject to CGT — but only on the post-1 July 2027 portion of the gain. The pre-1 July 2027 portion remains exempt.

1 July 2027 valuation as new cost base: Margaret needs an ATO-supported valuation of the land at 1 July 2027. Assume formal appraisal returns $900,000.

Reform portion gain: $1,200,000 − $900,000 = $300,000 — and because Margaret is a foreign resident at sale, no CPI indexation applies. The full nominal $300,000 is assessable.

Tax position:

• Foreign resident at sale (UK resident).
• 50% discount gone (abolished for everyone from 1 July 2027; was denied to her foreign-resident accrual anyway under the 8 May 2012 rule).
• No indexation (foreign residents excluded).
• No 30% minimum binding (non-resident).
• All $300,000 taxed at non-resident brackets:
  • $0–$135k @ 30% = $40,500
  • $135k–$190k @ 37% = $20,350
  • $190k–$300,000 @ 45% = $49,500
  • Total: ~$110,350

Compare with old rules: the full $1.2M sale would have been entirely exempt under the pre-2027 pre-CGT rule. Reform takes a previously zero-tax asset to ~$110,350 of tax. This is the biggest absolute change of any scenario in this article — and the foreign-resident indexation exclusion adds roughly $25,000 versus what a resident seller would pay on the same facts.

FRCGW at settlement: 15% × $1,200,000 = $180,000 withheld. Margaret is in a refund position by ~$70,000 → variation application before settlement is essential.

UK foreign tax credit: Margaret pays UK CGT on the same gain (treaty gives Australia primary taxing rights on Australian real property, so the AU tax credits against the UK liability — net residual depends on UK rates).

The pre-1985 inherited asset story is a meaningful loss for cross-generational Australian families with property held by overseas-domiciled descendants. The exposure was free for ~45 years; from 1 July 2027 it isn’t.

The 12.5% withholding — wait, 15% (since 1 Jan 2025)

A common misconception is that FRCGW is still 12.5%. It’s 15% since 1 January 2025, and the $750,000 threshold was abolished at the same time. So:

• Sale price $400k → 15% × $400k = $60,000 withheld.
• Sale price $1.2M → 15% × $1.2M = $180,000 withheld.
• Sale price $5M → 15% × $5M = $750,000 withheld.

Withholding is on the gross sale price, not the gain. It is fully refundable against actual tax liability, but the cashflow gap between settlement and lodgement (typically 6–12 months) can be brutal for foreign-resident vendors with no Australian banking footprint to bridge.

Variation applications are the answer if expected actual tax is materially below 15% of the sale price. Apply 6–8 weeks before settlement; ATO processing on cross-border applications is slower than for domestic clearance certificates. Worked-example 4 is a clear variation candidate: ~$110,350 actual tax vs $180,000 default withholding.

For Australian expats who are still Australian tax residents (Group 1 above), apply for a clearance certificate — free, fast (1–14 business days), valid 12 months. This avoids withholding entirely.

Tax treaty interactions

The reform doesn’t override treaties — treaties override domestic law where they conflict, and the reform is domestic law. But for Australian real property, no major treaty overrides Australia’s domestic taxing right anyway. So the reform applies to foreign-resident property sales regardless of treaty.

Where treaties matter:

• Shares in Australian-listed companies — the AU-US, AU-UK and AU-Singapore treaties typically give the residence country primary taxing rights on share gains (subject to “land-rich” exceptions for property-heavy companies). A US resident selling BHP shares might escape Australian CGT entirely under the treaty. The reform doesn’t change this carve-out — it applies only where Australia retains taxing rights.
• Land-rich Australian companies — when an Australian company holds property worth more than 50% of its assets, most treaties preserve Australian taxing rights on share-sale gains as if they were direct property gains. The reform applies as for direct property.
• Indirect Australian property interests — foreign-resident shareholders selling shares in foreign companies that own Australian property face TARP (Taxable Australian Real Property) rules. Reform applies.

For non-property assets (shares, units, crypto, IP), the treaty position needs an actual reading on the relevant DTA. Don’t extrapolate from the property answer.

Foreign tax credit mechanics: if Australia taxes a gain and the country of residence also taxes the same gain, the country of residence typically gives a tax credit for the Australian tax paid, capped at the country of residence’s tax on the same gain. So the Australian tax is rarely “wasted” — it just changes who collects. But:

• The cap matters: if Australia taxes more aggressively than the residence country (e.g. AU 45% non-resident bracket vs Singapore 22% top marginal), the excess Australian tax is not refundable by the residence country. It’s a final cost.
• Timing matters: the AU tax is paid on lodgement of the AU return (usually months after settlement); the residence-country credit is claimed in the residence-country return. Cashflow gap can be a year.

Australian expats returning home — CGT residency-change events

When you stop being an Australian tax resident, you face a CGT Event I1 deemed disposal of your non-Australian assets (unless you elect to defer). When you become an Australian tax resident again, you face a CGT Event I2 deemed acquisition of your non-Australian assets at market value on that date.

These events are not changed by the reform. They continue to apply as before. The reform only affects how the gain is taxed after you have residency status — the timing and existence of the deemed events sit at the residency change.

Practical takeaway for returning expats:

• Track the market value of your non-Australian portfolio at the date you re-establish AU residency. This is your new Australian cost base going forward.
• Any gain accrued on those assets WHILE you were a foreign resident is outside the Australian CGT net (subject to TARP carve-outs for Australian real property).
• Any gain accrued AFTER your return is subject to AU CGT — and from 1 July 2027 onward, to the reform.

For Australian assets held throughout (e.g. Sydney apartment), no deemed event triggers on residency change. The reform applies to those assets on actual disposal.

Temporary residents — different rules apply

If you are in Australia on a temporary visa and meet the Subdivision 768-915 temporary resident tests, you have a different CGT regime: most non-TARP foreign-source gains are exempt from Australian CGT, and the foreign-resident main residence denial doesn’t apply in the same way. The reform applies to your taxable Australian gains — but note that temporary residents are excluded from CPI indexation alongside foreign residents under the final legislation, so your post-2027 taxable Australian gains are assessed on the full nominal amount. The temporary-resident carve-out for foreign-source gains continues.

If you might be a temporary resident (typical: working-holiday-maker, 482/485 visa holders, NZ citizens on SCV), get a specific position from a tax agent before assuming the foreign-resident treatment in this article applies to you.

Planning levers

Three high-impact levers for expats and foreign residents facing the reform:

1. Crystallise pre-1 July 2027 gains if you’d sell anyway

If you have a residual resident-period discount entitlement on a long-held Australian asset and you were planning to sell within 12–24 months anyway, the 30 June 2027 deadline matters. CGT events before that date avoid the split treatment entirely (you’d still face foreign-resident 8 May 2012 discount denial, but no reform overlay).

Be clear-eyed about who this helps: if your entire gain accrued while you were a foreign resident, the reform changes almost nothing for you (full nominal gain at non-resident rates before and after), so there’s no tax reason to rush. If you have significant resident-period accruals, the deemed sale preserves your pre-2027 discounted position even if you hold — but as a foreign resident you get no indexation on post-2027 growth. Run the actual numbers in the CGT calculator.

2. Time your tax residency change

If you’re between countries — leaving Australia or returning to Australia — the date you change tax residency affects what discount and exemption regime applies to your existing Australian assets. The 8 May 2012 rule means foreign-resident periods drop the 50% discount on legacy gains; the reform from 1 July 2027 then layers split treatment on top.

For someone returning to Australia in 2027 who plans to sell an investment property in 2029, the timing of the residency change (March 2027 vs January 2028) materially affects the discount apportionment on the legacy portion. This is a complex calc — get a tax agent to model both timings before booking a flight.

3. Manage FRCGW cashflow with a variation

For property sales where your expected actual tax liability is clearly below 15% of the sale price (worked example 4 is a clear case), apply for a withholding variation 6–8 weeks before settlement. Save up to hundreds of thousands of dollars of cashflow gap between settlement and lodgement.

For Australian-resident expats (Group 1), the clearance certificate is even simpler — free, online, 1–14 business days, valid 12 months. No reason to skip it.

Sources

• Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026) and Income Tax Rates Amendment (Tax Reform No. 1) Act 2026 (Act No. 50 of 2026) — passed 25 June 2026, royal assent 26 June 2026. The reform applies to all CGT assets held by individuals, trusts and partnerships, including pre-1985 assets; foreign and temporary residents are excluded from CPI indexation.
• Parliament of Australia — bill homepage and Senate amendments: aph.gov.au.
• Income Tax Assessment Act 1997, Subdivision 855-A — foreign resident CGT regime (Taxable Australian Real Property and indirect interests).
• Income Tax Assessment Act 1997, Subdivision 115-C — 50% CGT discount apportionment for foreign-resident periods (8 May 2012 rule).
• ATO: Foreign resident capital gains withholding overview.
• ATO: Main residence exemption for foreign residents.
• 50% CGT Discount Reform: Cost Base Indexation + 30% Minimum Tax from 1 July 2027 — master reform article.
• Selling Your Home as an Expat: The Main Residence Exemption Trap — pre-reform companion on the 2019 rule.
• Foreign Resident CGT Withholding: 15% Rate From 1 January 2025 — FRCGW mechanics.