Month: August 2017

New Foreign Resident Capital Gains Withholding Rules

From 1 July 2017, new rules for Foreign Resident Capital Gains Withholding (“FRCGW”) will apply to vendors selling of an Australian property (including both real property and other properties). This article will only discuss how the regime applies to the real property transactions.

There are two changes main changes from the 2016-17 policy:

  1. the threshold is reduced from $2,000,000.00 to $750,000; and
  2. the FRCGW withholding tax rate will be increased from 10% to 12.5%.

The change is a part of the Federal budget plan to impose “stronger rules for foreign investors owning Australian housing”. Continue reading “New Foreign Resident Capital Gains Withholding Rules”