- FRCGW will apply for real property disposals where the contract price is $750,000 and above (currently $2 million); and
- The FRCGW 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.
Where a foreign resident disposes of certain taxable Australian property, the purchaser is required to withhold an amount from the purchase price and pay that amount to the Australian Taxation Office (ATO).
See our previous article here for more information on the FRCGW regime when it was introduced 12 months ago. To discuss these changes and how they may impact your clients, please call us on 07 3223 6100 or email firstname.lastname@example.org.