Foreign resident capital gains withholding applies to disposals of certain taxable Australian property under contracts entered into from 1 July 2016.
Situations that attract our attention include where there is a disposal of:
- real property with a market value of at least $750,000 and both
- the foreign resident vendor did not apply for a clearance certificate or a withholding variation
- the purchaser has not paid a withholding amount
- membership interests in an Australian entity that owns substantial real property assets and the foreign resident vendor held a material ownership interest in the entity.
For more information on withholding, see Capital gains withholding: Impacts on foreign and Australian residents.
Failure to withhold and pay the withholding on disposal of certain high-value real property and membership interests.