Australia: From Power Lines to Gold Mines

In brief

The final quarter of 2025 has seen the Federal Court hand down two decisions relating to the application of capital gains tax (CGT) provisions to foreign residents in the context of disposal by foreign residents of shares in an Australian company.

YTL Power Investments Limited v Commissioner of Taxation of the Commonwealth of Australia [2025] FCA 1317 and Newmont Canada FN Holdings ULC v Commissioner of Taxation (No 2) [2025] FCA 1356 provide clarity to foreign residents regarding the scope of these rules and have constrained the more expansive approach pursued by the Commissioner.

At the core of these proceedings lies an assessment of the extent to which the value of the Australian entity was derived from Australian real property.

Download the full "Australia: From Power Lines to Gold Mines"

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Victoria Lanyon, Partner, Lena Nguyen, Associate, and Nicholas Tse, Associate have contributed to this legal update.