partners for life
Foreign Resident Capital Gains Tax Withholding
The new withholding system that will apply when non-residents dispose of certain taxable Australian property starts from 1 July 2016.
In very broad terms, when a non-resident disposes of certain taxable Australian property (e.g., land and building in Australia) the purchaser will generally be required to withhold 10% of the purchase price and pay this to the ATO.
Although the new system applies to real property – including residential property – real property transactions with a market value under $2 million are excluded.
If you are considering buying a property from a non-resident vendor, please contact us to determine if you will have a withholding and reporting obligations under the new legislation.
Thinking about becoming a client?
Book your free, no obligation consultation right now via our online booking system or get in touch to find out more
Already a client and want to get in touch?
Send us an email via our enquiry form or give us a call today