Are you an Aussie expat? Please sign petition, this is outrageous

PROPOSED CAPITAL GAINS TAX CHANGES TO REMOVE PRINCIPAL RESIDENCE EXEMPTION WHEN LIVING OVERSEAS.

In the May 2017 Budget Australian Treasurer Scott Morrison announced measures to remove the Principal Residence for foreign investors. We spoke of this in our Annual Budget Seminar and mentioned the vagueness of the announcement and the potential that the current 6 year rule that extends the residence period, and therefore the capital gains tax period, might be at threat.

The draft legislation was released on 21st July 2017 and went much further than expected by proposing to remove any entitlement to the usual tax free capital gains status on a principal residence for any prior period living in Australia if the property is sold at the time when you are living overseas.

This is a great deviation of the intentions announced in the Budget Overview which stated"Strengthening the capital gains tax rules so that foreign investors pay their fair share of capital gains tax."

The proposed legislation goes much further and is anything but fair to any Australian that has chosen to spend a few years working out of Australia, as they will be aggressively removed from their currently legally entitled residence exemption, purely on the fact that you are overseas at the time of sale.

As an example, had you lived in a property in Australia as your residence for 20 years, then move overseas and sell the property after 1 year abroad, then the full capital gains would be subject to Capital Gains Tax where under current rules it would be a tax free entitlement.

This hardly seems fair!

The current legislation adequately ensures that an appropriate level of Capital Gains Tax is due and payable when the property is an investment so there is no need for any change in legislation if one wanted to maintain fairness.

We request that you join our petition now so we can submit our proposal with a strong and united support.

Simply click here to join our petition now and we request you also pass this email and link on to your friends and family.

There is more at stake than just an increase in tax. Remember anyone living abroad is already carrying a greater tax burden due to the removal of the previous 50% capital gains tax free concession which occurred in May 2012.

This is sending a statement that the Government is willing to look at taxing your private residence, today's proposal is for expatriates but tomorrow's could be for all Australians.

The time to make a stand is now and we need, and appreciate, your support.

Your undertaking in our petition:

We hope that our participation in this petition demonstrates to the Australian Government the important value we place on the role of Australian Expatriates in:



Supporting the Australian property market;



Improving the supply of housing for Australia's growing population;



Creating and maintaining valuable employment and economic activity in the Property & Construction industries; and



Promoting Australia on the international stage in business and commerce through the advancement of our individuals in the global corporate world.

We feel it only fair that Australian Expatriates are not adversely disadvantaged for living overseas and should maintain their rightful entitlement to any Capital Gains Tax Concession relating to periods of ownership of a property that has been used as their principal residence and family home.

We further submit that:



The current legislation is more than adequate in this regard and there is no need to make any changes in this regard;



It should be noted that as expatriates we are currently paying more than our fair share of Capital Gains Tax as we are no longer entitled to the 50% Capital Gains Tax concession for any period of overseas residency, so we are already dramatically disadvantaged to Australian residents;



Just because we have taken the opportunity to expand our skills and careers through a period of overseas employment, should not mean that we lose any rights as Citizens or Permanent Residents in regard to the tax status of our family home; and



Being an expatriate has significant economic benefit to Australia through trade opportunities, global reputation, enhanced skills that will return to Australia eventually and significant ongoing investment as the vast majority of expatriates continue to acquire property and investment assets in Australia and repatriate significant financial resources, adding great value to the Australian economy and national wealth.

I consent for my name to be displayed on a list of support, but my contact information will remain private and confidential and not be disclosed to any party.

Click here to sign onto our Petition.

 

A petition isnt permitted (yet). Petitions for proposed or undraft laws arent considered by either house.

There is a Bill that was before Parliament re the changed withholding rate. In the EM (Cl 1.9) to that law it flagged a future bill which has yet to be drafted or issued or even issued for consultation which would contain the proposed measures re CGT. At present all that is said is speculative.

When the legislation is draft and public consultation is open then that is the process. Public feedback during that process is what is needed. Only when a bill is before Parliament can a petition to members be considered by either house.