• New rules for foreign residents selling property

    Australia is strengthening its Capital Gains Tax (CGT) regime to assist in the collection of foreign residents’ CGT liabilities.

    New rules will soon apply to foreign residents selling taxable Australian property with a market value of $2 million or above. From 1 July 2016, a 10% non-final withholding tax will be incurred on these sales.

    Australian resident vendors selling such property will need to obtain a clearance certificate from the ATO prior to settlement to ensure they do not incur the 10% non-final withholding tax.

    The new withholding obligation will ensure we can effectively uphold the integrity of the foreign resident CGT regime. It will apply to contracts entered into on or after 1 July 2016.

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      Last modified: 16 Mar 2016QC 48332