The Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Act was given Royal Assent on 30 March 2022. The Act came into force on the day on which it received Royal assent save for provisions which are specified to come into force on a specified date.
The Act amends the Income Tax Act 2007 in relation to the bright-line test for residential land and the main home exclusion for disposal within 10 years. The bright-line property rule provides that if you sell a residential property that you have owned for less than 10 years (or 5 years for qualifying new builds) you may have to pay income tax on any gain on the sale.
The change eagerly awaited, is the change to when the acquisition date for the bright-line test for certain family trusts will deem a property to have been acquired. The effect of the change is a rollover of the acquisition date from the original owner of the land to the new owner when calculating the bright-line period for transfers of residential land to and from qualifying family trusts...
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