Any one know if kiwis are affected by the outrageous 50% foreigners capital gains tax? And if so, would it apply on properties already purchased?
The rules dont care which country you came from or depart to. If you are a non-resident, even temporarily, the issue occurs. The proposed CGT changes for main residences also impact as does NSW and Vic Land tax and duty in many cases for NZDers (but not all !!) When the changes were introduced ion 8th May 2012 a concession to protect the existing CGT gain to that was part of the deal. To access it you need a qualified valuer to value the property at 8th May 2012...You can do it later. And gain after that date is taxed at 100%.
Thanks. So could you confirm what capital gains tax would a foreign investor now pay if he sold a property? Is it still calculated as income tax, reduced by 50%?
No. A foreign investor does not get a 50% CGT discount on direct or indirect Australian real property. That concession was withdrawn in 2012. 100% of the profit would be added to income and taxed at the relevant non-resident tax scale. If the property was non-Australian real property a CGT occurs on the date they depart Australia if they were a tax resident. The market value of the property less its costbase is the CGT profit. 50% of that is taxed at resident tax rates if they had been a resident. If they were never a tax resident Australia does not seek to tax anything. Individual income tax rates
