Australia: Guidance on claiming credit for foreign resident capital gains withholding from property sale

Taxpayer must file return to claim credit.

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July 21, 2025

The Australian Taxation Office (ATO) released a guide on how to claim foreign resident capital gains withholding (FRCGW) from a property sale as a credit.

The guide provides that if there is an amount withheld under FRCGW, Australian and foreign resident vendors need to file a tax return to claim the credit that was withheld, even if their income is below the filing threshold.

The FRCGW credit amount will be refunded in full if:

  • There are no tax debts.
  • There is no capital gains tax payable on the sale of the property.
  • There is no tax payable on any other Australian-source income (for foreign residents only).

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