Foreign resident capital gains withholding

Significant changes to the Foreign Resident Capital Gains Withholding (FRCGW) regime will take effect on 1 January 2025.

Currently, Australian residents selling property must provide a Clearance Certificate to avoid having 12.5% of the sale price withheld, applicable to properties valued at $750,000 or more. From 2025, the withholding rate will increase from 12.5% to 15%, and the $750,000 threshold will be removed, applying to all property sales.



If a Clearance Certificate is not provided by settlement, 15% of the sale price will be withheld and remitted to the ATO. Applying early is recommended as certificates can take up to 28 days.

For further information, contact your Brentnalls SA advisor to discuss.

Disclaimer

The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.