The Government has introduced new provisions to first narrow the focus of CGT for non-residents to Australian real property and permanent establishment assets and secondly introduce a rigorous “land rich” type mechanism that looks through interposed entities. This paper considers:
- which taxpayers will benefit?
- how this particular “land-rich” tracing mechanism operates
- structuring implications
- tax treaty interactions, i.e. whether Australia has the right to impose this new tax impost
- assets held through trusts.