foreign investor

Need to Know: New Foreign Resident CGT Withholding Tax

What is the change?

On Friday July 1 2016, the rules for all transacting dwellings and commercial property worth over $2 million will change. A 10% non-final Capital Gains Withholding tax will be incurred on these transactions at settlement. This will affect all transactions and including those by Australian Residents

The new legislation imposes an obligation on purchasers to withhold 10% of the purchase price and pay it to the ATO where a seller enters a contract after 1 July 2016.

Never be caught by unexpected changes in Australian property law.

Changes to Foreign Investment Rules You Need to Know

What’s happening?

The Australian Federal Government has been cracking down on loop holes in foreign investment with stricter foreign investment rules in place since December 2015. Under the new regime, the penalties for breaking the rules are tough. Compliance to the new rules and its enforcement has been strengthend with the ATO aiming to cover more than 600 million transactions annually.

So how do you avoid getting on the wrong side of the ATO?

Do the new rules apply to you?

The Foreign Investment rules apply to ‘a foreign person’ who is defined as someone who is not ordinarily a resident in Australia.