Govt to explore withholding tax for sales of non-resident Australian property
The Australian Treasury issued a discussion paper on October 31st to explore how the 10% non-final withholding tax will apply to the sale of taxable Australian property by foreign residents.
Under the measures, the payer in a transaction will have an obligation to withhold 10% of any proceeds payable in relation to the transaction where:
- The payee is a foreign resident
- The transaction involves an asset that is "taxable Australian property"
The measure will not apply to residential property transactions under $2.5 million or to disposals by Australian residents. The measure was announced by the previous Government in the 2013/2014 Budget and adopted by the current Government. It is intended to apply from 1 July 2016.
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Last updated November 2014. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.