Does the five year exemption from capital gains tax for short-term residents departing Australia still apply?
No. This has been replaced with an exemption for temporary residents. Temporary residents are not taxed on capital gains from the disposal of assets that do not have the necessary connection with Australia (for CGT events that occur before 12 December 2006) or are not taxable Australian property (for CGT events that occur on or after 12 December 2006). Transitional provisions will continue for a period of five years to allow short-term residents who were in Australia on 6 April 2006 (and are not temporary residents) to continue to take advantage of the five year exemption from CGT.
