From 1 January 2025, the Foreign Resident Capital Gains Withholding (FRCGW) tax rate will:
- increase from 12.5% to 15%; and
- the withholding threshold will be reduced from $750,000 to $0.
The government announced the above changes in its Mid-Year Economic and Fiscal Outlook report released on 13 December 2023.
What is the FRCGW?
Foreign resident capital gains withholding (FRCGW) applies to vendors disposing of certain taxable property under contracts entered into from 1 July 2016.The current FRCGW tax rate is 12.5%. It applies to real property disposals where the contract price is $750,000 or more. Vendors can avoid the requirement of the purchaser to withhold the 12.5% by obtaining the Foreign Resident Capital Gains Withholding Clearance Certificate from ATO.
If you have any queries or need assistance with foreign resident capital gains withholding tax, please contact us. This article is for general information only and does not constitute legal advice. Reader should seek legal advice before making any decisions.
How can I learn more?
Serena Ding.
Principal.
- Property, Business & Public Notary
- 03 9890 3321
- Email Address: s.ding@robinsongill.com.au
Kelly Brown.
Associate.
- Property and Wills & Estates
- 03 9890 3321
- Email Address: k.brown@robinsongill.com.au
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