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Taxtimes(Initiate)Initiate
31 Mar 2026

Short Version: If I was a temporary resident at the time of sale and the shares weren't taxable Australian property, should any capital gain be disregarded under s768-915, even though the shares vested while in Australia?



Longer version: I am trying to understand whether Australian capital gains tax applies to overseas employee shares that were granted while I was living in Ireland, but vested and were sold after I moved to Australia.


For context:

  • I joined a US-listed tech company in June 2020 while living and working in Ireland.
  • I moved to Australia in January 2023 and have been living and working here since then.
  • My partner and I are both in Australia on a 482 visa.
  • The shares are in the US parent company and are not Australian property.

I was granted shares via the RSU scheme and they vested over a four year schedule. Illustrative Example:

  • 100 shares were granted to me on 1 January 2022 while I was living in Ireland.
  • The share price at grant was US$10 per share.
  • I moved to Australia in January 2023.
  • The shares vested on 1 January 2024, when the share price was US$20 per share.
  • I sold the shares on 1 June 2024 for US$25 per share. (Gain of $500)

My main question is about CGT.


Specifically:

  • As a temporary resident on a 482 visa, are these US shares exempt from Australian CGT because they are not taxable Australian property?
  • If they are exempt while I am a temporary resident, does that mean there is no Australian CGT on the $500 gain (US$20 to US$25) when I sell?
  • Does it make any difference that the shares were granted before I moved to Australia and relate to work performed in Ireland?
  • The shares vested based on my time being employed in Australia.


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JayATO(Community Support)Community Support
1 Apr 2026

Hi @Taxtimes,


As a temporary resident on a 482 visa, you're generally only subject to capital gains tax (CGT) on assets that are taxable Australian property. The US shares in your example aren't taxable Australian property, which means different rules apply depending on when you vested and sold them.


For the capital gain you made when you sold the shares (from US$20 to US$25), the tax treatment depends on whether you were still a temporary resident at the time of sale. If you were a temporary resident when you sold the shares, the capital gain or loss on assets that aren't taxable Australian property is generally disregarded. This means you wouldn't pay Australian CGT on that gain while you remain a temporary resident.


If you need further clarification or have additional questions, we recommend reviewing the ESS and foreign income exemptions for Australian residents and temporary residents on our website. For tailored advice, you can also contact us or consider requesting a private ruling.

Taxtimes(Initiate)Initiate
1 Apr 2026

Thanks so much for your help.


I can confirm that I was, and still am, a temporary resident on a 482 visa. Just to clarify, my understanding is that the fact the shares vested based on my employment in Australia is irrelevant, and that any gains on sale are exempt while I am a temporary resident.


I also wanted to confirm how this applies to shares that were granted and vested while I was in Australia. For example, if I arrived in Australia in February 2023, received a share grant in March 2023, and then sold those shares in 2025 at a gain, would that gain still be exempt, or would it be taxable?


I have already lodged my return through my accountants, who have advised that CGT is payable. However, I may consider submitting an amendment depending on your guidance.

Thanks again for your time and assistance.

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