Changes to Australian capital gains tax rules for foreign residents – draft legislation released

The draft legislation includes a retrospective application of up to 20 years to prior CGT events by an expanded definition of real property that will be concerning for many taxpayers.

On 10 April 2026, draft legislation in relation to the Australian Government's proposed strengthening of the Australian capital gains tax (CGT) rules for foreign residents was released. While the prior announcements proposed clarification and expansion of the foreign resident CGT rules on a prospective basis, the draft legislation now includes retrospective application of up to 20 years to prior CGT events by an expanded definition of real property. This is an unexpected development and not...

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Authors: Matt Ervin, Shirley Lam,

Published Date: 13 April 2026