Hello, I have been living primarily in Canada for the last two years, however I have been back home numerous times and looking to sell my primary residence, which has remained vacant (as this is the house I came back to) whilst I have been away. Will I need to pay CGT?
Foreign residents selling property are now not able to claim the main residence exemption (either fully or partially). There are exceptions. See below
Eligibility for main residence exemption | Australian Taxation Office
If you are a non-Australian tax resident (foreign resident) then the sale is subject to capital gains.
To sell property now you require a foreign resident capital gains withholding certificate (FRCGW) otherwise 15% of the sale price will be withheld by the purchaser and remitted to the ATO.
Only Australian tax residents can obtain a certificate. Foreign residents can apply for a variation of the withholding depending on their circumstances.
See below for information
Foreign resident capital gains withholding | Australian Taxation Office
You will likely need to be an Australian tax resident on the sale date to obtain the main residence exemption and avoid capital gains (subject to main residence exemption criteria)
This rule is so inequitable - I can't believe the legislation hasn't been challenged and amended by now.
Thanks for this, do you have any idea how the CGT is calculated?
For foreign residents (apart from the exceptions), calculation is normal CGT calculation.
Calculating your CGT | Australian Taxation Office
Sale price (or market value) - cost base = gain/loss
Cost base consists of 5 elements. These are detailed below
Cost base of assets | Australian Taxation Office
Foreign residents are not entitled to the 50% discount.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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