Government Announcements
Compulsory acquisition of part of a main residence
19.03.2009
On 19 March 2009 the Assistant Treasurer announced that the CGT main residence exemption will be extended to compulsory acquisitions (and certain other involuntary events) relating to part of a taxpayer’s main residence.
This will ensure that taxpayers do not pay CGT on compulsory acquisitions of part of their main residence and that taxpayers are not worse off as a result of a compulsory acquisition, compared to if the compulsory event had not occurred.
The changes are to apply to CGT events that happen after the date of Royal Assent to the amending legislation. Taxpayers will also have the option to apply the changes from the 2004-05 income year to the date of Royal Assent.
A Treasury consultation paper providing further information about this proposal has been released.
For the text of the Treasurer’s media release, click here. The media release has a link to the Treasury consultation paper.
