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You would need to apply the Australian CGT rules for the purpose of determining the Australian tax implications. This means that the capital gain needs to be included in the Australian tax return for the year in which the CGT event occurred (generally when the contract was signed).
If you are subject to foreign tax on the capital gain then it may be possible for you t to claim a foreign income tax offset (FITO) to reduce the Australian tax liability. Unfortunately, you cannot claim a tax offset for foreign tax until it has actually been paid.
You will be deemed to acquire the foreign property for the market value when you became a resident of Australia. The capital gain will need to be calculated according to our domestic legislation. This will be the capital proceeds less the market value when you became a resident of Australia.
There are certain exemptions which may be available to you. Such as Pre- CGT exemption, 6 years' absence rule, etc. |
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