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Capital gains withholding

Failure to withhold and pay the withholding on disposal of certain high-value real property and membership interests.

Last updated 23 August 2022

Foreign resident capital gains withholding applies to disposals of certain taxable Australian property under contracts entered into from 1 July 2016.

Situations that attract our attention include where there is a disposal of:

  • real property with a market value of at least $750,000 and both    
    • the foreign resident vendor did not apply for a clearance certificate or a withholding variation
    • the purchaser has not paid a withholding amount 
     
  • membership interests in an Australian entity that owns substantial real property assets and the foreign resident vendor held a material ownership interest in the entity.

For more information on withholding, see Capital gains withholding: Impacts on foreign and Australian residents.

QC69439