Bright-line test extended to 5 years
From 29 March 2018 the bright-line test for residential property has been extended from 2 years to 5 years.The extended bright-line test only applies to properties for which an agreement to purchase the property was entered into on or after 29 March 2018.
If an agreement to purchase a property was entered into before that date, the 2-year bright-line test will still apply.
The 5-year bright-line test applies in the same way as the 2-year bright-line test.The residential land withholding tax (RLWT) rules have been extended from 2 years to 5 years as a result of extending the bright-line test.
An offshore person will be liable for RLWT on residential land sold within five years of purchase, if the purchase date was on or after 29 March 2018.