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CGT Event I1 — Becoming AU Resident Again

When you return to Australia and become a tax resident, you're deemed to have acquired foreign assets at their market value on arrival. This resets your CGT cost base.

What is CGT Event I1? Under section 104-165 of the ITAA 1997, when you become an Australian tax resident, any assets that are not "taxable Australian property" are deemed to be acquired at their market value on the date you become a resident. This becomes your cost base for future CGT calculations.

Your Foreign Assets on Return

List your foreign assets with their original cost and market value when you become an AU resident:

Key Points About CGT Event I1

  • Applies to: All assets that are NOT "taxable Australian property" (i.e., your foreign shares, overseas property, foreign bank accounts, crypto, etc.)
  • Does NOT apply to: Australian real property, shares in AU companies with >50% Australian property assets, mining rights — these were always subject to AU CGT as taxable Australian property.
  • No immediate tax: CGT Event I1 itself does NOT trigger a tax liability. It simply resets the cost base. Tax only applies when you eventually sell the asset.
  • Record keeping: Get valuations of all foreign assets on the date you become an AU resident. Use an independent valuer for property. Use market prices for listed shares/crypto.
  • Pre-CGT assets: Assets acquired before 20 September 1985 are generally CGT-free. CGT Event I1 doesn't change this for Australian assets.
  • Interaction with foreign CGT: If you paid CGT overseas on these assets while you were a non-resident, you may be able to claim FITO when you eventually sell them as an AU resident.
Valuation tip: Get formal valuations as close to your return date as possible. For listed investments, save screenshots of market prices. For property, get a formal valuation from a licensed valuer in the country where the property is located.
Timing your return: If your foreign assets have appreciated significantly, returning to Australia resets the cost base to market value — meaning the gain while you were a non-resident is never taxed in Australia. This can be very favourable. Conversely, if assets have fallen in value, the lower cost base means a bigger taxable gain if they recover after your return.