Our ATO Community is here to help make tax and super easier. Ask questions, share your knowledge and discuss your experiences with us and our Community.
29 December 2019
On 1 March 2018 I moved to Australia on a 457 temporary visa.
On 1 November 2019 I was granted Permanent Residence through the 186 Visa.
Before 1 March 2018 I received 20 stock shares of a company in USA listed on NASDAQ.
On 1 December 2019 I sold those 20 shares received before 1 March 2018 and made a Capital Gain.
1) The Capital Gain is calculated with the Cost Base set according to the market value on 1 November 2019?
2) Since I owned the shares for more than 12 months do I get a 50% discount in CGT? Or the stock ownership actually starts on 1 November 2019 and I am not eligible for the discount?
7 January 2020
We have some content on our website about changing residency and capital gains which answers this.
When you become an Australian resident (other than a temporary resident), you're taken to have acquired certain assets at the time you became a resident for their market value at that time..
So based on this:
1) Yes your cost base is set according to market value on 1 November 2019 when you became resident
2) Stock ownership would have commenced on 1 November 2019 so you would not be eligible for the discount
Hope this helps. Thanks, NateH
Australian Taxation Office
Working for all Australians