Federal Budget | Global tax
The foreign resident capital gains tax regime will be tightened by broadening the types of assets subject to CGT, implementing a 365-day testing period for the principal asset test, and requiring foreign residents to notify the ATO before disposing of shares exceeding million in value. These amendments aim to clarify which assets are subject to CGT and prevent tax avoidance by foreign residents. The changes will apply to CGT events starting from 1 July 2025, with no grandfathering for existing assets.