Retrospective CGT risk, why Australia’s tax shift could reshape capital flows

What the CGT change actually means

At its core, the proposal targets how foreign residents are taxed on gains from taxable Australian property.

That already includes direct property holdings, as well as certain indirect interests held through trusts, companies, or fund structures that derive value from Australian assets.

Under the current framework, foreign investors pay CGT when they dispose of assets classified as taxable Australian property, although the boundaries around what qualifies, and how far those rules extend into layered ownership structures, have historically allowed some flexibility.

The draft legislation tightens those. . .