Foreign Resident Capital Gains withholding threshold reduced
Foreign Resident Capital Gains withholding threshold reduced
The Federal govt. has reduced the Foreign Resident Capital Gains withholding threshold on property sold to $750000.00. AICSA Past President Tim O’Halloran said “This change will affect every property sold over $750000, every vendor will be required to obtain a clearance certificate from the ATO to ensure amounts are not withheld from their sale proceeds”. Failure to get the certificate will incur a 12.5% tax. Certificates should be applied for at the time of listing to be sure.
The State govt now require Foreign Purchasers to pay an additional 7% stamp duty on the purchase price of residential and/or vacant land.
Both of these matters require the Conveyancer to spend additional time to comply with the above.
