The Government has announced several changes to the foreign resident capital gains withholding (FRCGW) tax regime which will apply from 1 January 2025.
These changes include:
- An increase of the FRCGW tax rate from 12.5% to 15%; and
- A reduction in the withholding threshold from $750,000.00 to $0.
This means all Vendors selling real property will be required to obtain a foreign resident capital gains withholding clearance certificate, irrespective of the Contract price.
It also means Purchasers will be required to withhold 15% of the purchase price on all contracts where the Vendor is a foreign resident.
If you have any questions please contact our Property Team on (02) 4927 2900.
