Will I entitle to CGT 50% discount

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(I'm new)I'm new

29 Feb 2024

Hello, I am Leo and is an Australian citizen who is now living in Hong Kong .I and my family will migrate back to Melbourne in October2024.

We bought a house in 2020 which is now renting out in Melbourne and gonna sell it on July 2024. If I successfully sell this investing property, I think the CGT will be reported in financial year 2024/25. And so, I am wondering if I can entitle to the CGT 50%discount when I pay the capital gain tax. Because I:

1) own this house more than 12 months

2) I believe I would be an Australian resident for tax purpose in financial year 2024/25 when I migrate back to Melbourne on Oct 2024

Since if the sale of contract is on July 2024, from the period of July 2024 to Oct 2024 I am still in Hong Kong , I am not sure I can have CGT 50% discount.

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ExMember22

(Champion)Champion

29 Feb 2024

You will not be entitled to the full 50% if you were a not a resident for Australian tax purposes for the entire time you owned the property. However, you may be entitled to a lower % which is calculated with reference to any time during your period of ownership that you were a resident for Australian tax purposes.

Only your residency from the time you purchased the property until the time you sell it is relevant. If you become a resident again after you sell the property, this will not impact your eligibility to the CGT discount.

See: https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/cgt-discount-for-foreign-residents