Deloitte Tax Update included:
[1] Review of CGT Main Residence and Foreign Residents - on 23 October 2019, the Australian government reintroduced legislation to deny the main residence capital gains tax (CGT) exemption if the owner is a foreign resident on the sale date.
If enacted, the CGT exemption will only apply if, broadly:
• you are resident at sale, or
• you are foreign resident at sale but
• you have been foreign resident for less than six years at sale; and
• you sold the property due to terminal illness/death of spouse/child or divorce/etc.
There are similar changes to the Main Residence exemption rules for deceased estates of foreign residents, too.
Grandfathering only for main residences owned before 7:30pm ACT time on 9 May 2017 (but only until 30 June 2020 – a 12 month extension from the 2017 announcement).
So most clients will lose 100% of the exemption if they sell while foreign resident.
Recent residency ruling Harding v commissioner of taxation was also discussed.
[2] Superannuation Amnesty that was reintroduced on the 18 September 2019 (more details can be found on the ATO website)
Immigration Update included:
Temporary skilled shortage visa streams
-Short-term; Mediam term and Labour Agreement terms discussed
-Challenges associated with the TSS visa discussed
-Brief review of skilled occupation lists
-Benefits of the New Regional Visas discussed
-Global Talent Scheme – reducing barriers to business entry
The Human Capital Trends 2019 Deloitte Global Human Capital Trends Report – Leading the social enterprise: Reinvent with a human focus was discussed at length.
Talent mobility: Winning the war on the home front:
– 46% told us their managers resist internal mobility.
– 56% told us it was easier for people to find a new job at an outside organisation than within their current organisation
Mobility policy framework trends:
Development of multiple assignment types (Developed to Developed, Developed to Developing, Global)
Some key challenges
1 Identifying and tracking the individuals
2 Defining what non-traditional Mobility is and managing intra-regional mobility
3 Balancing the needs of the employee, business requirements and risk management
Policy Flexibility:
1: How much flexibility is right?
2: Who gets to choose?
3: What kind of flexibility works best?
4: Which provisions to flex on?
Increasing impact of immigration compliance on mobility policies.
Deloitte then kindly shared their slide deck with participants.