Australia

Individual - Significant developments

Last reviewed - 03 July 2020

The capital gains tax main residence exemption no longer applies for foreign residents, subject to transitional relief provided in respect of properties held at 9 May 2017 disposed of on or before 30 June 2020, and an exception where the residence is sold as a result of certain 'life events'. See the Income determination section for more information.

From 1 July 2019 deductions cannot be claimed for expenses related to the holding of certain vacant land that is not used in carrying on a business for the purpose of producing assessable income. See the Income determination section for more information.

The double tax treaty signed by Australia and Israel on 28 March 2019 has entered into force and applies in respect of withholding taxes from 1 January 2020. See the Foreign tax relief and tax treaties section for more information.

The net medical expense tax offset that applied to individuals who incurred net medical expenses relating to disability aids, attendant care, or aged care ceases to apply from 1 July 2019.

The Australian Taxation Office (ATO) has a high wealth private groups tax performance programme, which covers Australian resident individuals who, together with their associates, control wealth of more than 50 million Australian dollars (AUD). The aim of this programme is to provide greater assurance to the community that high wealth private groups are paying the right amount of tax. See the Tax administration section for more information.

Temporary economic stimulus measures introduced as part of the Federal Government’s economic response to COVID-19 provide support for individuals and households in the form of stimulus payments and income support, measures to allow early access to superannuation, and reducing the superannuation minimum drawdown rates. See the Other taxes section for more information on the temporary superannuation measures.