Great news has surfaced for QLD property owners in the wake of the 2010/2011 floods as the Government announces anyone with investment properties involved in the Lockyer Valley Regional Council's land swap program will be eligible for capital gains tax (CGT) relief.
It is estimated about 40 per cent of the properties eligible to be swapped as part of the program are investment properties.
Currently, taxpayers affected by a natural disaster may have to pay CGT when a property they own is destroyed or disposed of and they receive a replacement property from an Australian government agency (Commonwealth, State, Territory or local) in a land swap program for natural disasters.
This measure allows taxpayers to choose a CGT exemption when they participate in an Australian government agency program that provides replacement assets to taxpayers affected by a natural disaster, like the one being run by Lockyer Valley Regional Council.
"This will remove tax impediments to programs like the Lockyer Valley Regional Council's land swap program, so flood affected property owners can get back on track without having to worry about paying capital gains tax on their original property," the Assistant Treasurer said.
"Taxpayers will also be able to maintain pre?CGT status on their replacement asset so they are not disadvantaged in tax terms if they participate in this type of program," he said.
This measure applies generally to CGT events happening on or after 1 July 2011.
