Draft legislation has been released to implement 2017–2018 Federal Budget measures relating to the CGT liability of foreign residents.

The measures, which applied from 9 May 2017:

  • remove the entitlement to the CGT main residence exemption (MRE) for foreign residents that have dwellings that qualify as their main residence; and
  • ensure that, for the purpose of determining whether an entity's underlying value is principally derived from taxable Australian real property (TARP), the principal asset test is applied on an associate inclusive basis.