Sep 12, 2017

Business & Corporate: Foreign Residential Capital Gains Withholding (FRCGW)

Changes were made to the Foreign Residential Capital Gains Withholding (FRCGW) from 1 July 2017.

Andrew Frank

Changes were made to the Foreign Residential Capital Gains Withholding (FRCGW) from 1 July 2017.

The changes apply to Vendor’s when the contract price is over $750,000.

The FRCGW withholding tax rate is 12.5%

It imposes an obligation on the purchaser to withhold 12.5% of the purchase price and pay the 12.5% to the Australian Tax Office (ATO) if the vendor is not in possession of an ATO Clearance Certificate.

When selling your property over $750,000 please ensure you provide your lawyer with your Tax File Number (TFN) to obtain an ATO Clearance Certificate on your behalf.

If you are thinking of purchasing or selling a property please contact our Andrew Frank or email us at info@franklegal.com.au

This article is provided to the reader for general information. It is not legal advice. It was written by Reegina Moteea and edited by Andrew Frank.

See more from the blog:

property law foreign resident cgt withholding regime for the sale of australian property

Keywords: purchasing, selling, tax, FRCGW

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