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Discussion in 'Accounting & Tax' started by ATANG, 13th Aug, 2018.

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  1. ATANG

    ATANG Well-Known Member

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    Not many seems to be aware of this new law. Is it applicable to all vendors with properties sold over $750k regardless of the residency? From what i gathered from ATO enquiry line, that's the case but on some wordings in ATO website, it applies to all foreigner as well? Anyone can advise?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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  3. FredBear

    FredBear Well-Known Member

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  4. ATANG

    ATANG Well-Known Member

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    Apparently, i think its applicable to Aus resident as well?

    Vendor beware: Home sales above $750K require proof that seller is not a foreign investor

     
    Last edited: 13th Aug, 2018
  5. Mike A

    Mike A Well-Known Member

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    Just lodged one for a client. Still waiting on the refund from the ato
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The withholding affects ALL eligible property sales of $750K or more that are subject to these laws. (resi premises, company titles, land for future housing etc). Some sales may be exempted. eg some existing OTP contracts just being settled. The solicitor advising your property sale / purchase should advise.

    In its simplest form a tax resident completes an online form with the ATO and is exempted. Each owner must do this. No withholding occurs. However if they have tax arrears etc they may be refused a certificate. If they fail to correctly get a clearance certificate withholding occurs by default. They can lodge a tax return (even for a CGT exempt home sale) and claim the refund of the tax. A non-resident cannot apply.

    A tax non-resident will have withholding imposed (incl citizens, expats and others). They should lodge a tax return to get credit for the withholding and refund of any excessive tax v's final CGT. They cannot seek exemption.

    Capital gains withholding: Impacts on foreign and Australian residents
     

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