Looking to Sell Properties

Martin Spiers - Thursday, October 05, 2017

Looking to Sell Properties? Don't Get Caught With Having To Pay 12.5% Withholding Tax

As you might already be aware, the government recently introduced legislation to crackdown on foreign investors avoiding their tax obligations. The legislation imposes a withholding tax of 12.5% on properties sold for $750,000 or more from 1 July 2017. But what you may not know is that this legislation might also affect you.

Under this legislation, all persons selling properties will be considered as a foreign resident until proven otherwise. This means that if you are selling properties (including your home) for $750,000 or more, then the buyer will have to withhold 12.5% tax from that transaction and pay it to the ATO; unless you can prove that you are not a foreign resident.

To avoid this happening to you, you should apply for a Foreign Resident Capital Gains Withholding Clearance Certificate from the ATO; if you are looking to sell your property.

For more information, please contact our team at H & M Accountants.

By Philippe Phan