On 9 May 2017, the Australian Government announced proposed changes to the foreign resident capital gains withholding (FRCGW) rate and threshold. The changes will apply to contracts entered into on or after 1 July 2017, for real property disposals where the contract price is $750,000 and above (currently $2 million) and the FRCGW withholding tax rate will be 12.5% (currently 10%).
The existing threshold and rate will apply for any contracts that are entered into before 1 July 2017, even if they are not due to settle until after 1 July 2017.
