Practitioners should note that the Foreign Resident Capital Gains Withholding Rules changed on 1 January 2025 with the following:
- Withholding rates will increase from 12.5% to 15%, and
- The $750,000.00 property value threshold will be removed, and the withholding rules will apply to all property transfers.
These changes will apply to contracts entered on or after 1 January 2025 and were made pursuant to the Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Act 2024 (Cth).
All legal practitioners acting in property transactions should be aware of these changes as all vendors are now required to supply a valid clearance certificate from the Australian Taxation Office or withholding at 15% will apply.
Disclaimer: Laws are subject to change, and the information provided is general in nature. Readers are encouraged to seek professional legal advice tailored to their specific circumstances to ensure accurate and relevant guidance.