Australia: Legislation amending foreign resident capital gain tax, merger control regimes passed by Parliament
Legislation clarifies and broadens foreign resident CGT tax base by incorporating definition of “real property.”
september 11, 2026
Legislation amending the foreign resident capital gains tax (CGT) and merger control regimes was passed by lower house of Parliament (House of Representatives), with no further amendment from the upper house of Parliament (Senate).
- Clarifies and broadens the foreign resident CGT tax base by incorporating a definition of “real property” that applies to CGT events happening on or after the effective date of the legislation
- Inserts new subsections into sections 18-15, 18-20, and 18-25 in Schedule 1 of the Taxation Administration Act 1953 to entitle taxpayers to claim the tax credit from amounts withheld under the foreign resident capital gains withholding legislation
- Amends the acquisitions provisions in the Competition and Consumer Act 2010 to refine the operation of the new mandatory and suspensory merger control regime
In addition, a change from the original bill introduced to Parliament extends the original stipulated timeframe for the proposed transitional 50% CGT discount for certain foreign residents who dispose of Australian renewable energy assets by 10 years to June 30, 2040.