On 22 February 2016, the Australian Senate passed the Tax and Superannuation Laws Amendment (2015 Measures No. 6) Bill 2015, following passage by the House of Representative on 4 February. The legislation includes changes in the capital gains tax (CGT) treatment of earnout rights and introduces CGT withholding obligations for purchases of certain Australian assets from foreign residents.
CGT on Earnout Rights
Earnout rights are rights to future payments linked to the performance of an asse…