Do Australian residents pay CGT on foreign assets like overseas shares or property?

Yes. Australian residents are taxed on their worldwide income and capital gains, including gains from foreign assets such as overseas shares, foreign investment property, and foreign currency. If you are an Australian tax resident and you sell a foreign asset for a profit, that capital gain must be declared on your Australian tax return.

Foreign currency gains: When you sell foreign assets, the gain must be converted to Australian dollars using the ATO's exchange rate (the spot rate on the date of the transaction, or an average rate for the income year if the ATO permits). Fluctuations in exchange rates can themselves create taxable gains or losses — if you hold foreign currency and the AUD depreciates, you may have a forex gain when you convert back.

CGT discount available: Australian residents can still claim the 50% CGT discount on foreign assets held for more than 12 months, subject to the normal rules. Companies cannot claim the discount.

Foreign tax credits: If you paid capital gains tax or equivalent tax in the foreign country on the same gain, you may be able to claim a foreign income tax offset in Australia to avoid double taxation. Australia has double tax agreements with many countries that specify which country has primary taxing rights. You can generally offset the foreign tax paid against your Australian tax liability on the same income, so you pay the higher of the two rates but not both in full.