Australian residents are subject to CGT on all of their CGT assets worldwide unless an exception applies to the asset. Foreign and temporary residents are subject to CGT only on five prescribed categories of CGT assets, which all have some connection to Australia — known as ‘taxable Australian property’ (TAP). Tax Residency and CGT:When it…
Let’s unravel the mystery of Indirect Australian Real Property Interests (IARP). What Are IARP Interests?Indirect Australian real property interests refer to membership interests in an entity that—subject to a few exclusions—satisfies two key tests: Non-Portfolio Interest Test: This test checks whether the interest represents a significant stake (usually 10% or more) in the entity. Principal Asset Test: Here, we’re…
