Digital Nomad
CRS Schema Version 3.0 & Foreign Resident CGT: What Digital Nomads Need to Know
Foreign residents and global earners must monitor two reforms: updated Common Reporting Standard reports from 2027 and proposed changes to non-resident CGT assets under Division 855.
By NomadicTax Research Team • 5-8 min read • August 27, 2026
## Common Reporting Standard Schema 3.0 — What Changes, What When
- On **17 August 2026**, the ATO announced it will adopt **CRS Schema Version 3.0**, aligning with the OECD’s updated standard. It will be mandatory for production submissions starting **1 January 2027**—older schema version 2.0 will be rejected after that date.([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/CRS?utm_source=openai))
- New validation rules include mandatory contact information, schema versioning rules, and other business logic checks. Testing is now available via the **External Vendor Testing Environment (EVTE)**.([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/CRS?utm_source=openai))
### Why this matters for digital nomads & foreign residents:
- Foreign financial accounts may be reported under CRS; updates in schema rules may affect **which accounts and contact details** need reporting. Missed updates can result in rejections, delays or audits.
- Having an unexpected Australian nexus (e.g., bank account, property) could trigger non-resident **Capital Gains Tax (CGT)** under proposed changes to Division 855 (see below). Maintain awareness of tax residence and investment structuring.|
## Proposed Changes in Foreign Resident CGT (Div 855)
- Proposed amendments to Division 855 aim to **clarify and broaden assets** on which foreign residents are liable for Australian CGT. These are intended to apply to CGT events from **1 July 2025**.([ato.gov.au](https://www.ato.gov.au/api/public/content/0-b12d922f-3ffe-47a6-a868-289919bcf50a?utm_source=openai))
- New rules include:
• extending the point-in-time principal asset test to a **365-day testing period**
• requiring foreign persons disposing of shares or membership interests **valued over $20 million** to **notify the ATO before execution**.([ato.gov.au](https://www.ato.gov.au/api/public/content/0-b12d922f-3ffe-47a6-a868-289919bcf50a?utm_source=openai))
- These reforms are **not yet law**, but closeness to becoming law suggests digital nomads & foreign investors need to review existing holdings and likely upcoming obligations.([ato.gov.au](https://www.ato.gov.au/api/public/content/0-b12d922f-3ffe-47a6-a868-289919bcf50a?utm_source=openai))
## Real-World Scenarios & Planning Tips
1. **Digital nomads maintaining non-resident status with investments in Australia**: If you own significant shareholding (>$20 million), you'll soon need to notify the ATO before you sell or transfer those holdings.
2. **Wealthy foreign residents with property or indirect property exposure via shares or trusts**: Under the broadened rules, certain interests may become taxable even if previously exempt under earlier tests—review structure now.
3. **CRS reporting interoperability**: Financial institutions may share your foreign financial accounts with Australia; ensure your tax file number and contact info are up-to-date to avoid misreporting or unnecessary withholding.
## Action Items for Digital Nomads & Foreign Investors
- Stay abreast of legislative developments—when Division 855 amendments become law, assess your CGT exposure.
- Work with tax advisors to restructure holdings—minimising indirect exposure or structuring to reduce notification thresholds.
- For CRS: generate proper reports; update entity interfaces and financial reporting systems to support schema v3.0 by 1 January 2027.
## Final Thoughts
CRS Schema v3.0 implementation and proposed Division 855 reforms signal growing focus on global compliance, foreign resident exposure, and transparency. If you're choosing where to live, invest, or declare residency, align proactively—it’s far easier than reactive compliance.