Goo
New
rules to the Federal Budget were announced last month regarding the foreign
resident capital gains withholding (FRCGW) rate and threshold. The changes
will apply to contracts entered on or after 1 July
2017.
The
changes will apply to real property disposals where the contract price is
$750,000 and above (previously $2 million) and the FRCGW withholding tax rate
will be 12.5% (previously 10%).
All
vendors selling property valued at $750,000 and above
must obtain a clearance certificate from the ATO. If
this clearance certificate is not obtained, the purchaser (or their solicitor)
must withhold 12.5% of the final sale price and forward it to the ATO.
For
more on this issue, please CLICK
HERE to read Capital gains withholding: Impacts on foreign
and Australian residents from the ATO.
Thomas Felgueras
National Marketing and Design Coordinator
Century 21dinator
CENTURY 21 Real Estate
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