Supporting Older Australians - Exempting Granny Flat Arrangements from Capital Gains Tax (CGT)
The Treasury
23 Apr 2021
6 days left to have your say
Date
-
Consultation Type
Exposure Draft

Key Documents

On 5 October 2020, the Government announced that it will provide a targeted capital gains tax (CGT) exemption for granny flat arrangements where there is a formal written agreement in place. Under the measure, CGT will not apply to the creation, variation or termination of a formal written granny flat arrangement providing accommodation for older Australians or people with disabilities.

CGT consequences are currently an impediment to the creation of formal and legally enforceable granny flat arrangements. When faced with a potentially significant CGT liability, families often opt for informal arrangements, which can lead to financial abuse and exploitation in the event that the family relationship breaks down. This measure will remove the CGT impediments, reducing the risk of abuse to vulnerable Australians.

The Government is seeking stakeholder views on exposure draft legislation and explanatory materials for amendments that would give effect to this announcement.

Responding

You can submit responses to this consultation up until 29 April 2021. Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

View our submission guidelines for further information.

How To Respond

Email

grannyflats@treasury.gov.au

Post

Address written submissions to:

Assistant Secretary
Personal and Small Business Tax Branch
Individuals and Indirect Taxation Division
The Treasury
Langton Crescent
PARKES ACT 2600

Enquiries

Email: grannyflats@treasury.gov.au
Phone: Personal and Small Business Tax Branch +61 2 6263 2111