Ex-pats worst night mare when Government dismisses requests to extend CGT deadline

Aussie Expat Homeowners Hit with Harsh CGT Deadline Amid COVID-19 Disruption

Australian expatriates are being forced into a corner, with the looming 30 June 2020 deadline to sell their Australian homes or face a hefty Capital Gains Tax bill.

The government introduced legislation in December 2019, removing the main residence CGT exemption for Australian citizens living overseas. The law provides only a narrow window, until 30 June 2020, for affected homeowners to sell their properties and still qualify for the exemption. After this date, they may face a capital gains tax bill dating back to when the home was originally purchased, not just when they moved overseas.

This is a financial shock that could cost some expats hundreds of thousands of dollars.

Why Now, and Why So Harsh?

Despite the chaos brought on by COVID-19, the government has refused to extend the deadline. A spokesman for Assistant Treasurer Michael Sukkar stated that the CGT changes were originally announced in the 2017–2018 Federal Budget, giving Australians “ample time” to act.

However, that position ignores the fact that the law didn’t actually pass until December 2019, leaving just six months for expats to sell. And this short window coincided with border closures, 14-day quarantine rules, limited international flights, and national lockdowns, making it virtually impossible for many to return to Australia and prepare their homes for sale.

Real Barriers for Real Australians

Aussie expats trying to comply with the law have faced:

• Mandatory quarantine stopping travel and inspections

• Lockdowns preventing property viewings

• Positive COVID-19 cases in rental properties blocking access

• Difficulty in coordinating sales remotely

This is not about poor planning. It's about impossible circumstances.

A Call for Fairness

For weeks, tax experts and industry bodies have urged the government to reconsider the tight deadline. Unfortunately, those calls have been ignored.

This policy, while rooted in fairness and budget savings, has now become a harsh penalty for Australians living overseas, many of whom had every intention of complying, until the pandemic struck.

Need Tax Advice? Let’s Talk

If you're an Australian expat concerned about how these CGT changes affect you, contact Dolman Bateman today. Our experienced tax accountants understand the nuances of this legislation and can help you navigate your options.

Let us help protect your interests before it’s too late.

📞 Contact us now for professional tax advice tailored to Australian expats.

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Disclaimer:

The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.