Australia: Guidance on applying for variations from foreign resident capital gains withholding
12.5% FRCGW applies to all property sales of AU$750,000 or more unless there is an approved variation
12.5% FRCGW applies to all property sales of AU$750,000 or more
The Australian Taxation Office (ATO) issued guidance on how to apply for a variation from foreign resident capital gains withholding (FRCGW).
The 12.5% FRCGW applies to all property sales of AU$750,000 or more unless there is an approved variation.
In applying for the variation, the ATO advises sellers to:
- Include the sales contracts with the variation application
- Submit variation applications online at least 28 days before property settlement to ensure processing time
- Provide Australian clearance certificates before settlement for Australian residents to prove their residency for tax purposes
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