The Australian Treasury launched a public consultation on improving the foreign resident capital gains withholding tax regime on 23 July, 2024. The consultation is set to conclude on 5 August, 2024.
As part of the 2023–24 Mid-Year Economic and Fiscal Outlook, the government announced a measure to increase the integrity of the foreign resident capital gains withholding (FRCGW) regime.
This measure increases the FRCGW rate for relevant CGT assets from 12.5% to 15% and removes the current AUD 750,000 threshold before which withholding applies for transactions involving either taxable Australian real property or an indirect Australian real property interest that provides company title interests.
These changes will apply to acquisitions of relevant CGT assets made on or after 1 January 2025 and the commencement of this measure.
The government is seeking stakeholders’ views on the effectiveness of the exposure draft legislation and accompanying explanatory material implementing this measure.
