My wife and I relocated from the USA to Australia, to retire, after 26 years as ex-pats. Due to circumstances we have a lot of US based equities. So the amount we will owe in capital gains tax is quite important to us, so we declare our income correctly, now we've returned.
I read https://community.ato.gov.au/s/user?u=penny7169&t=posts (and others), and it seems clear but I want to ask some follow-up questions.
The post from penny7169 shows, clearly, that the cost basis for equities is reset to the date that residency began or was resumed (as in our case).
Are there any limits to the reset of the cost basis for tax? As an example assume we purchased shares at $5/each in 2000. On our date of residency in 2026 they are now worth $100/each. Is the reply to penny7169 is still correct that the cost basis is now $100/each, and Australian taxes are only due on the portion above $100/each, assuming we sell above $100/each.
If this is true, is there any limit or threshold to the amount that can be claimed at the CGT discount rate (see https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt)?
While https://www.austlii.edu.au/cgi-bin/viewdoc/au/other/dfat/treaties/2003/14.html covers the details I'm concerned I'm missing something obvious.
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