Connect with us

New threshold for capital gains withholding

From 1 July 2017, where a foreign resident disposes of Australian real property with a market value of $750,000 or above, the purchaser will be required to withhold 12.5% of the purchase price and pay it to the ATO unless the seller provides a variation (this is referred to as ‘foreign resident capital gains withholding’).

However, Australian resident vendors who dispose of Australian real property with a market value of $750,000 or above will need to apply for a clearance certificate from the ATO to ensure amounts are not withheld from their sale proceeds.

Therefore, all transactions involving real property with a market value of $750,000 or above will need the vendor and purchaser to consider if a clearance certificate is required.

hart partners line divider

**Disclaimer: The information is sourced from NTAA**

For tax help:

or contact Hart Partners today:
Phone (03) 9600 3220
Mobile (04) 1322 2922
Fax (03) 9376 3507
Email paula@hartpartners.com.au
Mailbox client@hartpartners.com.au

 

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
hart partners line divider

Introducing our Hart Partners App!

Introducing the Hart Partners App!

Are You Ready to Improve Your Financial Health?

Contact us today for a free consultation. Tell us your goals and challenges and we’ll tell you how we can help you!

BOOK A FREE CONSULTATION