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Foreign residents and the main residence exemption no more

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Published on 01 Mar 20 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

It can be quite an adventure to live and work overseas for a time, should the opportunity arise. Many who have done so choose to keep their home in Australia because they can maintain the main residence exemption from capital gains tax. However, not anymore. In fact, not ever. Following the 2017-18 Budget announcement, the CGT provisions were amended with effect from 9 May 2017 to abolish the main residence exemption for foreign residents. While there is no grandfathering for existing properties, there is a limited transitional period during which the exemption may still be available. This article examines the technical features of the amendments, the practical consequences, and the tough decision many expats will need to make very soon. In addition, the article sets out how practitioners can help their affected clients make that decision.

Author profile

David Montani CTA
David Montani, CTA, is National Head of Technical Tax – Private Enterprise at Grant Thornton. He has over 30 years’ experience, with over 20 of those in specialist tax advisory. In his role with GT, David delivers practical tax training, mentors staff, provides tax technical support on significant client engagements, and assists with quality and excellence protocols. - Current at 13 November 2025
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