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Matthew Gilligan

BRIGHT-LINE ANNOUNCEMENT

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Today (20 December 2023) the coalition government announced that the bright-line test will be reduced to two years from 1 July 2024. 


This is what Nicola Willis had to say:
"Today I am announcing our immediate decision to bring the brightline test for residential property back to two years, effective from 1 July 2024. Removing this effective capital gains tax means that properties sold after 1 July 2024 will only be subject to the rule if owned for less than two years."

At GRA we are very pleased, not only with the reduction of bright-line timeframe, but also that the government have followed through and done what they said they would. 

A two-year timeframe is fairer for genuine investors, while still capturing those who are really traders but who would have liked to pose as ‘long-term investors’ in order to avoid paying tax on the capital gains they make. 

We expect the definition of “sale” will likely be a binding contract, but we need to wait for the detail to be confirmed. We will keep you posted as the details come to light. 


Matthew Gilligan
signed
Matthew Gilligan
Director
© Gilligan Rowe & Associates LP

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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
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