Aussie ex-pat homeowners are facing a serious financial situation coming June 30. The Federal government passed the law in December 2019, eliminating the CGT exemption for Australian expatriates, with only 6 months reprieve to sell before June 30, 2020. Ex-pats are finding it incredibly difficult to achieve in this COVID-19 climate.
For many weeks, tax experts have been calling on the government to extend the June 30 deadline. However they have indicated that this would not happen.
The spokesman for Assistant Treasurer Michael Sukkar has made it clear this would not happen.
The reason is because the changes were announced in the 2017-2018 budget, giving Australians ample time to prepare their homes for sale. He believes that ex-pats have had over 37 months to dispose of their property. However this only became law in December 2019 and it is unreasonable to expect Australian ex-pats to have acted on this legislation any sooner than December 2019.
Ex-pats are facing many problems when it comes to trying to sell their property during a pandemic. These include quarantine requirements of 14 days for all citizens returning to Australia, which stopped them from being able to meet with real estate agents and prepare their property for the sale process. It also included cases of tenants testing positive of the coronavirus, which again restricted access to the property.
All in all, this is a nightmare for Aussie ex-pats, and we hope that the government may change its mind before the deadline.
If you would like to find out more or are looking for a new accountant, please contact us at Dolman Bateman and one of our expert accountants will be able to help you.
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