CLAW3201 Australian Taxation System CGT Part II Semester 1 2024

Java Python CLAW3201 Australian Taxation System

CGT Part II

Semester 1, 2024

Your Client, Alex, was born in Sydney and has been a tax resident of Australia for his entire life. However, on July 1, 2020, his company posted him to work in the UK. During this time, Alex rented out his main residence in Sydney.

On July 1, 2022, Alex established permanent residency in the UK, thereby ceasing to be an Australian resident. CLAW3201 Australian Taxation System CGT Part II Semester 1, 2024 On this date, his 100 shares in BHP triggered CGT event I1. These shares were initially acquired on October 8, 2021, at a price of $37.74 per share. The market value of these shares on July 1, 2022, was $40.05 per share.

Alex is interested in selling his house in Sydney, but he has learned that the main residence exemption does not apply to foreign residents, and the tax rates for foreign residents can be quite high. He is contemplating returning to Sydney for a minimum period of time just to sell the property