Australia Moves to Quell Fears on Retroactive Capital Gains Tax

The Australian tax authority moved Friday to tamp down concerns that it planned a large-scale reopening of old capital gains tax cases, saying that proposed changes to the law would affect very few taxpayers.

“The draft law confirms, with retrospective effect, the ATO’s long-standing view and compliance approach that the term ‘real property’ is not limited to its narrow, technical legal meaning,” the Australian Tax Office said in a statement. “This aligns with how we have administered the law. If the law is enacted, we would not expect to change our existing administrative approach.”

Draft legislation announced April ...