Off-shore property investors urged to get valuations following 2012 federal budget CGT decision
Non-residents and off-shore owners of Australian property who have been affected by the 2012 federal budget removal of the 50% capital gains tax (CGT) discount, are being advised by property valuation firms to obtain a timely market valuation.
Brendon Hulcombe, the ceo of national independent property advisory Group Herron Todd White, said the new rule took effect after 7.30pm on 8 May 2012.
“While the discount is planned to be withdrawn from 8 May 2012, expatriates and offshore investors can still claim the CGT discount for capital gains accrued prior to this date, if the non-resident obtains a market valuation of assets as at 8 May 2012,” he says.
“In order mitigate the rising costs of CGT for non-residents, we are providing recommendations to our international clients who own any type of real estate in Australia to urgently obtain a market valuation”, Hulcombe says.
Mr Holcombe said that although the discount was currently available to all individuals and trustee taxpayers irrespective of residency it would largely impact non-resident individuals who hold interests in Australian real estate.
