Key Changes:
- Removal of $750,000 Threshold: Starting January 1, 2025, all property sales by foreign residents will be subject to FRCGW, regardless of the property’s value.
- Increased Withholding Rate: The withholding rate will rise from 12.5% to 15%.
Implications for Foreign Property Sellers:
- Higher Tax Liability: The broader application of FRCGW and the increased withholding rate will result in a higher tax burden for foreign property sellers.
- Timely Action: To potentially benefit from the current lower threshold and rate, consider selling your Perth property before the end of 2024.
- Exemption Certificates: Australian residents and citizens are exempt from FRCGW but must obtain an exemption certificate from the ATO.
Next Steps:
- Consult with a Tax Professional: Seek advice from a tax advisor or accountant to understand the specific implications of the changes on your situation.
- Plan Ahead: If you’re planning to sell your property, start the process early to ensure compliance with the new rules and avoid potential delays.
By staying informed and taking proactive steps, foreign property sellers can navigate these changes and minimize their tax liabilities.
WhatsApp Josh on +61 (0)488038805 or josh@myperthrealestate.com.au for further information or a confidential discussion regarding buying, selling or renting
