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

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.

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

Keywords: purchasing, selling, tax, FRCGW