Our Approach: From Process to Fees

You do not have to  but you need to understand what happens if you do not.  When you cease to be an Australian tax resident, most of your assets are treated as having been disposed of at market value on that date under CGT Event I1 – creating a taxable capital gain even though you have not sold anything. You can elect to defer this tax until you actually sell, but that deferral eliminates the 50% CGT discount on any subsequent gain accrued while you are a non-resident.  For assets with a large unrealised gain, the question is whether it is better to sell before you leave (triggering a gain but potentially with the 50% discount available) or hold through departure (deferring the event but losing the discount on future gains). We model these scenarios for clients planning a move at least six months ahead.

Yes for gains that accrue during the period you are a non-resident of Australia. Only the portion of the gain that accrued while you were an Australian resident can qualify for the 50% discount.