Strengthening the foreign resident capital gains tax regime
The Tax Institute welcomes the opportunity to make a submission to the Treasury regarding the Federal Budget 2024-25 measure to strengthen Australia’s foreign resident capital gains tax (CGT) regime consultation paper (Consultation Paper).
In developing this submission, we have closely consulted with our National Large Business and International Technical Committee to prepare a considered response that represents the views of the Tax Institute’s broader membership.
As a preliminary comment, given that both this consultation and the Tax Practitioners Board registration review involve critical systemic changes, it is of concern that these consultations were released concurrently. Stakeholders within the tax profession need adequate time to comprehend the practical implications of the various proposals before finalising their positions and making recommendations regarding the issues presented in the Consultation Paper. Rushed consultation reduces effectiveness and increases the risk of poor policy outcomes and unintended consequences, potentially compromising the integrity of the tax system and adversely affecting the tax profession and the broader community.
As a result, our comments in this submission focus on broader proposals and do not address every question posed in the Consultation Paper.
Our detailed response and recommendations are contained in Appendix A. Our submission is intended to be a starting point for further discussion and consultation. If you would like to discuss any of the above, please contact The Tax Institute’s Senior Counsel – Tax & Legal, Julie Abdalla, on (02) 8223 0058.