By Bill Anderson, FCCA, Chief Executive Officer, Assetica — 2026-07-09
Australia has been tightening the screws on foreign residents: withholding on property sales up to 15 percent with the threshold removed, the main residence exemption long gone for non-residents, and a broadened net over what counts as taxable Australian property. What the changes mean for Australian business owners living in Dubai, and why the valuation of your company and its assets sits underneath every one of them.
Three shifts: foreign resident capital gains withholding on Australian property sales rose to 15 percent with the AUD 750,000 threshold removed, so it applies from the first dollar at settlement. The main residence exemption remains unavailable to non-residents selling the former family home. And the foreign resident CGT regime is being strengthened more broadly: expanded categories of taxable Australian property, land-rich testing over a period rather than a single date, and ATO engagement before large disposals.
After departure, most assets leave the Australian CGT net via the CGT event I1 deemed disposal, but taxable Australian property stays taxable wherever you live. Shares can themselves be TAP if the company is land-rich: broadly more than half its market value in Australian real property with a significant stake. That is a valuation exercise over the balance sheet, and with period-based testing a company that drifts land-rich during the ownership window can be caught even if it was not on the sale date.
Departure: CGT event I1 deems a disposal at market value, with an election to defer, both resting on a dated valuation. Holding: the land-rich composition decides whether shares remain TAP, evidenced by contemporaneous valuation of property against total assets. Disposal: selling property or a land-rich company from Dubai triggers 15 percent withholding and, for significant deals, earlier ATO engagement, with valuations supporting variation applications and price.
Map how much of the company's market value is Australian real property and how close it drifts to the halfway line across the year. Fix the departure valuation if it was never documented. Sequence disposals around the withholding cash-flow hit. Keep the Dubai side consistent: the same underlying value should feed the ATO position, any UAE holding structure and the AED 2 million Golden Visa report.
What is the foreign resident capital gains withholding rate now?
Fifteen percent of the purchase price on relevant Australian property sales by foreign residents, with the previous AUD 750,000 threshold removed, so it applies from the first dollar. It is withholding rather than final tax: the liability is settled through your return, and variations can be sought with proper evidence, where a defensible valuation helps.
Can I still claim the main residence exemption on my old family home?
Generally not while you are a foreign resident at the time of sale, subject to narrow life-event exceptions. Australians in Dubai who kept the family home and plan to sell should model the CGT before listing, because the exemption most people assume is usually gone.
Are my company shares still taxed in Australia after I move to Dubai?
Only if they are taxable Australian property, broadly where the company is land-rich (more than half its market value in Australian real property) and your stake is significant. That is a valuation test of the balance sheet, and period-based testing can look across the ownership window, not just the sale date.
Does the CGT event I1 exit charge still apply on departure?
Yes. Ceasing Australian tax residency deems a disposal of your non-TAP CGT assets at market value, with an election available to defer. The recent changes tighten what happens afterwards for property-linked assets; they do not remove the departure event.
How long does a valuation take?
Typically five to seven business days from receiving your Australian financial statements, asset registers and property details, shareholding and management accounts. Expedited two to three day delivery is available for settlement or filing deadlines.