Significant foreign resident CGT reforms: draft legislation released
Client AlertForeign resident CGT reforms expand taxable Australian real property, withholding and renewables discount.
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Tim has over fifteen years’ experience providing specialist taxation services, with a focus on corporate and international tax. With experience across all other tax matters, Tim has a broad taxation knowledge that clients value highly.
Before joining Grant Thornton in 2009, Tim held in-house tax roles in commerce for a large investment bank, both in Australia and internationally. From this, he developed a detailed knowledge of transaction tax (M&A tax), tax risk management and tax advisory issues.
Foreign resident CGT reforms expand taxable Australian real property, withholding and renewables discount.
On 30 October 2025, the Federal Court (Hespe J) handed down its decision in YTL Power Investments Limited v Commissioner of Taxation, finding for the Applicant and providing important guidance on the interpretation of ‘taxable Australian real property’ under Division 855 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997).
Treasury is taking steps to ensure fairer tax treatment for foreign resident investors by tightening Australia's foreign resident Capital Gains Tax (CGT) regime. Proposed changes aim to broaden the CGT base and enhance integrity, impacting infrastructure, energy, agriculture, and more.