💡 What Is CGT for Australian Expats?
Capital Gains Tax (CGT) applies when you sell certain assets — including property — and make a profit.
For Australian expats, CGT can still apply even after leaving the country.
👉 Under the Australian Taxation Office’s CGT rules, property located in Australia is always considered “taxable Australian property.”
That means the ATO can still tax you on the gain — even if you’re a non-resident at the time of sale.
🏠 What Changed in 2020: No More Main Residence Exemption
Before July 2020, Australian expats could often claim the main residence exemption when selling their former home.
However, the law changed — and now, non-residents no longer qualify unless they meet very narrow conditions (like life events).
🔗 Related reading: Expat Departure Tax Rules
💬 Example:
If you moved to London in 2018 and sell your Sydney apartment in 2025, you’ll likely face CGT on the full gain since purchase — no exemption.
📅 Determining Your Residency Matters
Residency drives how much CGT you pay.
If you sell while still an Australian tax resident, you’ll pay CGT at marginal rates, but you can still use the 50% discount (for assets held >12 months).
If you’re a non-resident, you:
- Lose the 50% CGT discount, and
- Can’t use the main residence exemption.
🔗 Learn more: Expat Tax Residency Explained
💰 Calculating the Capital Gain
To calculate your gain:
- Determine your cost base (purchase price + legal fees + stamp duty + improvements).
- Subtract it from your sale price.
- Apply applicable discounts or exemptions.
For overseas sales of foreign property (not Australian property), check whether your new country taxes the gain, and use the Australia–country tax treaty list to avoid double taxation.
📦 Felix’s Quick Tips
🦊 Keep all property records (purchase contracts, renovations, loan statements).
🦊 If you’re planning to sell after moving overseas, get tax advice before departure — timing the sale may save thousands.
🦊 Consider how departure tax applies to your worldwide assets before leaving Australia.
🦊 Non-residents: lodge an Australian tax return for the year of sale — even if you live abroad.
🇦🇺 For Aussie Expats
- Need a full walkthrough of CGT, superannuation, and residency? Read the Australia Expat Tax Guide.
- Want to check if you’re still an Australian resident? Start with ATO Residency Tests.
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