Tax Bites EP21: Exposure Draft Shock: Expanded Non Resident CGT on Land-Connected Assets

About this episode

The episode discusses the implications of the Treasury's exposure draft legislation on non-resident capital gains tax in Australia.

Partners Toby Eggleston, Nick Heggart and Ryan Leslie discuss Treasury’s 10 April 2026 exposure draft legislation implementing and expanding the 2024 budget proposals on when non-residents pay Australian CGT. The draft materially broadens “taxable Australian real property” beyond general law real property (post the YTL and Newmont decisions) to include rights over land, contractual rights, and fixed or installed assets expected to be on land for most of their useful life (e.g., wind/solar assets, pipelines, mining equipment, tenant fixtures), plus water entitlements, with some elements proposed to apply retrospectively to 12 December 2006. It also includes a treaty-override via the International Tax Agreements Act, changes the principal asset test to a 365-day lookback, introduces a limited 50% CGT discount for certain renewable generation disposals to 1 July 2030, and tightens the non-resident CGT withholding/declaration and clearance certificate processes, all amid a 14-day consultation period. Want to go deeper? Read our briefing note here: https://www.hsfkramer.com/insights/2026-04/australias-non-resident-cgt-changes 00:10 Welcome and agenda 00:32 Budget shock announcement…

People in this episode

Guests: Toby Eggleston, Nick Heggart, Ryan Leslie

Topics covered

• non-resident CGT
• Australian tax law
• real property definition
• taxable assets
• renewable energy
• legislative changes

Keywords

• CGT
• non-residents
• taxable Australian real property
• land-connected assets
• retrospective application
• tax reforms
• consultation period

Mentioned in this episode

Organizations: Treasury, International Tax Agreements Act

Books & works: briefing note

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