Gavin (00:00): Hi, I’m Gavin.
Ross Forrester (00:06): Hi, I’m Ross. And today, we’re talking about the main residence exemption. And the really important thing that’s happening now, is that if you’re a foreign tax resident of Australia, the main residence exemption on the side of your house is being taken away.
Gavin (00:22): Absolutely. So that would mean, for example, if you purchased a home in 1989 for $400,000.
Ross Forrester (00:33): Yep.
Gavin (00:33): And you moved to London in say 2020, and sold the property 2023 for one and a half million dollars, you’ve got the full tax and profit. So paying the tax on the $1 million profit.
Ross Forrester (00:45): Yep, exactly. So if you are thinking about moving overseas or you’re a mobile family, it’s really important to get good tax advice as part of your tax strategy as you come into Australia or move. Because with the loss of the main residence exemption for foreign residence, it can actually create really surprising tax outcomes.
Gavin (01:05): Absolutely.
Ross Forrester (01:05): Cheers guys. Thanks.
Gavin (01:06): See you.