The Federal Government have released draft legislation for public consultation, following its announcement in the 2012-13 Budget of plans to scrap the perk.
Assistant Treasurer David Bradbury says the discount isn’t necessary to attract foreign investment.
If the change takes effect, non-residents will be entitled to claim a discount on capital gains accrued prior to May 8, 2012. The asset must be valued as at that day.
The loss of discount would also apply to the sale of other property such as mining assets. The government expects the plan will save them $55 million over the forward estimates period.
Obviously the removal of this "discount" will make overseas investors reconsider their option to purchase property in Australia and possibly look to other countries for their investments.
Consultation on the draft legislation will close on April 5.
Team Galetto are training hard for the mad dash up Awaba Street on June 2nd. Registrations are now open for the 13th annual Balmoral Burn. We are strong supporters of the Humpty Dumpty Foundation, and the morning's events are always fun-filled for the whole family. Go to humpty.com.au for registration details. If we can do it, puff, gasp, puff....so can you!
We are seeing a surge in interest from overseas investors, and there is no doubt that this is helping to support our economic growth. Many foreign investors are purchasing a property as a residence for family members who are studying in Australia or they themselves are moving here to enable their children to get the best education they can from primary school through to university.