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  • International issues

    If you're a foreign resident or temporary resident:

    • you're subject to capital gains tax (CGT) only on taxable Australian property, such as real estate (or other real property) in Australia or a CGT asset you use in a business in Australia
    • for any discount capital gains after 8 May 2012, you'll need to work out the CGT discount you can apply (this is only for individuals).

    If you become an Australian resident, or stop being one, the range of assets on which you pay CGT in Australia changes.

    Note that:

    • ‘Australian resident’ means a resident of Australia for tax purposes.
    • these rules don't affect assets you acquired before 20 September 1985 (when CGT started).

    Foreign resident capital gains withholding first applied to vendors disposing of certain taxable Australian property under contracts entered into from 1 July 2016. A 10% non-final withholding was applied to these transactions at settlement.

    New rules for foreign resident capital gains withholding (FRCGW) apply to vendors disposing of certain taxable property under contracts entered into from 1 July 2017. The changes will apply to real property disposals where the contract price is $750,000 and above (previously $2 million) and the FRCGW withholding tax rate will be 12.5% (previously 10%). The previous threshold and rate will apply for any contracts that were entered into from 1 July 2016 and before 1 July 2017, even if they are not due to settle until after 1 July 2017.

    For more information visit Foreign resident capital gains withholding payments

    For Norfolk Island residents CGT applies to assets acquired from 23 October 2015.

    If you are a foreign resident when a CGT event happens to your residential property in Australia you are no longer entitled to claim the main residence exemption. There is a transitional period. To find out how this affects you, see Foreign residents and main residence exemption.

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    See also:

    Last modified: 29 Jun 2018QC 52302