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Withholding tax on non-resident property sales 

December 2014

Treasury has released a discussion paper on the proposed introduction of a 10% non-final withholding tax that would apply when a foreign resident disposes of real property located in Australia.

The introduction of this withholding tax was announced in the 2013/14 Federal Budget and is proposed to take effect from 1 July 2016.

While there is a carve-out for residential property transactions under $2.5 million, generally the purchaser will be required to withhold 10% of the proceeds if the vendor is a foreign resident.

We will keep you advised of the progress of these rules through future bulletins.


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Last updated December 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.

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Disclaimer

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.

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