In December 2019, new legislation was passed regarding the CGT Primary Place of Residence (PPR) exemption for non-resident taxpayers.
Effective from 1st July 2020, if you are a non-resident for tax purposes and you dispose of an Australian real property asset (which you held prior to 9th May 2017 (7.00pm AEST) you will have to pay CGT on the entire capital gain, even if the property was used as your PPR. There are a few exceptions that may apply in limited circumstances, but generally speaking, if you are planning to sell your property while living overseas, you should consider whether the timing of the sale will be affected by the change in legislation.
Please note that the absence rule still applies if you do not dispose of your property. Generally speaking, you can maintain the PPR status of your home after you move out for up to 6 years while it is used to produce income, and indefinitely if you never use it to produce income. This rule applies even if you are living overseas, as long as you do not treat any other dwelling as your PPR during that time.
For properties purchased on or after 9th May 2017 (7.00pm AEST), the PPR exemption is not available.
For more information about foreign residents and main residence exemption, please click here.