LinkedInJuly 24, 2026
Leaving Australia does not end Australian capital gains tax. Part of your portfolio stays taxable there, and a Bill introduced on 2 July 2026 would widen that part.
Under CGT event I1, ceasing Australian tax residence generally triggers a deemed disposal at market value. Direct Australian real property is not taxed on the way out. It stays in the Australian net, and the gain is taxed on eventual sale.
The Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026 is before Parliament, not law. If it passes in the August sittings, the capital gains measures could commence on 1 October.
Two changes matter.
A statutory definition of real property brings in rights over land, related contractual rights, and things fixed or installed on it.
And the principal asset test, one of two conditions that put a 10 percent stake in an Australian entity inside the net, moves from a single reading just before the sale to any point in the preceding 365 days.
The 12 December 2006 retrospective start date was dropped. Assets newly caught get no cost base reset, so pre-commencement growth can still be taxed on a later sale.
Australia ranks 33rd of 233 on the index I maintain. Tax freedom, at 2.73 out of 10, is its weakest dimension.
If you left Australia and kept a stake in an Australian entity, could you show what share of its value was land-linked on any day of the preceding 365 days?
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Tracked through GeoCompass, the jurisdiction intelligence layer behind Lucky Nomads.
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