Law Council of Australia

Business Law Section

Strengthening the foreign resident capital gains tax regime—draft legislation

Submission Date: 24 April 2026

The Taxation Committee of the Business Law Section of the Law Council of Australia (the Committee) welcomes the opportunity to comment on the:

—together the Draft Legislation.

Key Points

This submission raises significant rule of law concerns about the Draft Legislation. The Law Council of Australia strongly supports the Committee in bringing these matters to The Treasury’s attention and seeks a meeting to discuss them. Compliance with core rule of law principles should never be optional.

To this end, the Law Council’s Rule of Law Principles Policy Statement is attached. This acts as a guide to the framework often employed by the Law Council and its committees in evaluating the merits of government legislation, policy
and practice. We encourage its circulation across Government.

The key matters the Committee wishes to comment on are:

  1. ‘rule of law’ principles (as noted);
  2. retrospective application;
  3. potential for double counting—multiple interest holders;
  4. potential for double counting—timing issues;
  5. the term ‘or closely related interests’;
  6. breadth of the expanded “real property” definition in relation to things fixed or installed on land;
  7. double tax agreements;
  8. 365-day Principal Asset Test; and
  9. non-resident CGT withholding.
Related Documents

Last Updated on 13/05/2026

Share

Tags

Most recent items in Business Law Section


Trending Items in Business Law Section