www.ato.gov.au
Open in
urlscan Pro
104.69.162.121
Public Scan
Submitted URL: https://ato.gov.au/FRCGW
Effective URL: https://www.ato.gov.au/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains...
Submission: On February 15 via manual from CH — Scanned from AU
Effective URL: https://www.ato.gov.au/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains...
Submission: On February 15 via manual from CH — Scanned from AU
Form analysis 1 forms found in the DOM
POST /Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains-withholding---Impacts-on-foreign-and-Australian-residents/?=redirected_FRCG
<form method="post" action="/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains-withholding---Impacts-on-foreign-and-Australian-residents/?=redirected_FRCG" id="aspnetForm">
<div class="aspNetHidden">
<input type="hidden" name="EktronClientManager" id="EktronClientManager"
value="-569449246,-1939951303,-1080527330,-1687560804,-1388997516,2009761168,27274999,1979897163,-422906301,-1818005853,-1374097517,-1436176980,-1475916077,272582476,-28510048">
<input type="hidden" name="__VIEWSTATE" id="__VIEWSTATE"
value="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">
</div>
<script type="text/javascript">
//<![CDATA[
var visitorCookieName = "atogovauvisitor"; //]]>
</script>
<div class="aspNetHidden">
<input type="hidden" name="__VIEWSTATEGENERATOR" id="__VIEWSTATEGENERATOR" value="A42EB859">
</div>
<!-- Google Tag Manager -->
<noscript>
<iframe src="//www.googletagmanager.com/ns.html?id=GTM-MHRDBG" id="ctl00_GTM" height="0" width="0" style="display: none; visibility: hidden"></iframe>
</noscript>
<script>
(function(w, d, s, l, i) {
w[l] = w[l] || [];
w[l].push({
'gtm.start': new Date().getTime(),
event: 'gtm.js'
});
var f = d.getElementsByTagName(s)[0],
j = d.createElement(s),
dl = l != 'dataLayer' ? '&l=' + l : '';
j.async = true;
j.src = '//www.googletagmanager.com/gtm.js?id=' + i + dl;
f.parentNode.insertBefore(j, f);
})(window, document, 'script', 'dataLayer', 'GTM-MHRDBG');
</script>
<!-- End Google Tag Manager -->
<!--googleoff: all-->
<div id="skiptoLinks">
<!-- Will be filled in automatically -->
<a id="skip-link-main-content" href="#">Skip to main content</a><a id="skip-link-search" href="#">Skip to search</a><a id="skip-link-alex" href="#">Skip to Alex Virtual Assistant</a>
</div>
<script src="/js/accessible-skip-links.min.js"></script>
<!--Include viostream API call on content pages only
<script src="//publish.viostream.com/embed/api"></script>-->
<!--googleon: all-->
<!-- HEADER STARTS, inherited from the home page-->
<header class="site-header">
<div class="ui-blocker" aria-hidden="true"></div>
<script type="text/html" id="template-login">
<div id="template-login">
<div class="login"><label>
<h3>Login as</h3>
<div class="sel-style"><select>
<option selected="selected" value="https://onlineservices.ato.gov.au/default.aspx?PageName=HomePage">Individual</option>
<option value="https://onlineservices.ato.gov.au/default.aspx?PageName=HomePage">Sole Trader</option>
<option value="https://onlineservices.ato.gov.au/business/Businesslogin.html">Business</option>
<option value="https://onlineservices.ato.gov.au/onlineservices/login.html">BAS Agent</option>
<option value="https://onlineservices.ato.gov.au/onlineservices/login.html">Tax Agent</option>
<option value="https://am.ato.gov.au/amsupport/pages/welcome.htm">Access Manager</option>
<option value="https://onlineservices.ato.gov.au/non-resident/">Non-resident</option>
</select> </div>
</label><button type="button" class="login-button">Login</button><a href="/register" class="register">Register
<span aria-hidden="true" class="triangle">▶</span></a><span class="service-links"><a href="/atoo_systemmaintenance" class="system-maintenance">System maintenance and issues</a><span
class="separator"></span><a href="/accessmanager" class="access-manager">Access manager</a></span> </div>
</div>
</script>
<div>
<section class="sticky-menu visible-xs">
<div class="sticky-menu-buttons left-side"> <button type="button" aria-haspopup="true" data-ordinal="0">
<div class="resting-content"><span aria-hidden="true" class="glyphicon glyphicon-menu-hamburger"></span><span class="button-label">menu</span></div>
<div class="active-content"><span class="popup-close" aria-hidden="true"></span><span class="button-label">Close</span></div>
</button></div>
<h1 class="title"><a class="subtle-link" href="/"><span>ato</span></a></h1>
<div class="sticky-menu-buttons right-side"> <button type="button" aria-haspopup="true" data-ordinal="0">
<div class="resting-content"><span aria-hidden="true" class="glyphicon glyphicon-user"></span><span class="button-label">login</span></div>
<div class="active-content"><span class="popup-close" aria-hidden="true"></span><span class="button-label">Close</span></div>
</button><button type="button" aria-haspopup="true" data-ordinal="1">
<div class="resting-content"><span aria-hidden="true" class="glyphicon glyphicon-search"></span><span class="button-label">search</span></div>
<div class="active-content"><span class="popup-close" aria-hidden="true"></span><span class="button-label">Close</span></div>
</button><button type="button" aria-haspopup="true" data-ordinal="2">
<div class="resting-content"><span aria-hidden="true" class="fa fa-comment"></span><span class="button-label">ask</span></div>
<div class="active-content"><span class="popup-close" aria-hidden="true"></span><span class="button-label">Close</span></div>
</button></div>
</section>
<div class="top-nav-stripe layout-stripe hidden-xs">
<nav class="top-nav layout-content-box">
<ul>
<li class="go-to-atogovau"><a href="/">Go to <b>ato.gov.au</b></a></li>
<li><a target="_self" href="/Whats-new.aspx?marketsegment=Entire%20Website">What's New</a></li>
<li><a target="_self" href="https://community.ato.gov.au">ATO Community</a></li>
<li><a onclick="ntptEventTag('ev=UpperNavAZ');" href="/A-Z-index/AZItems.aspx?sorttype=AZIndex&marketsegment=Entire%20website">Tax Topics A-Z</a></li>
<li class="legal-active"><a onclick="ntptEventTag('ev=UpperNavLegal');" href="/Law/">Legal Database</a></li>
<li><a href="#" class="btn-login emphasised" aria-haspopup="true">Login</a></li>
</ul>
</nav>
</div>
<div class="header-popup-container layout-content-box">
<div class="header-popup original" role="dialog">
<div role="document"><button type="button" class="close popup-focus"><span class="icon" aria-hidden="true"></span><span class="sr-only">Close popup</span></button>
<section class="popup-content">
</section>
</div>
</div>
<div class="header-popup" role="dialog">
<div role="document"><button type="button" class="close popup-focus"><span class="icon" aria-hidden="true"></span><span class="sr-only">Close popup</span></button>
<section class="popup-content">
<div id="template-login">
<div class="login"><label>
<h3>Login as</h3>
<div class="sel-style"><select>
<option selected="selected" value="https://onlineservices.ato.gov.au/default.aspx?PageName=HomePage">Individual</option>
<option value="https://onlineservices.ato.gov.au/default.aspx?PageName=HomePage">Sole Trader</option>
<option value="https://onlineservices.ato.gov.au/business/Businesslogin.html">Business</option>
<option value="https://onlineservices.ato.gov.au/onlineservices/login.html">BAS Agent</option>
<option value="https://onlineservices.ato.gov.au/onlineservices/login.html">Tax Agent</option>
<option value="https://am.ato.gov.au/amsupport/pages/welcome.htm">Access Manager</option>
<option value="https://onlineservices.ato.gov.au/non-resident/">Non-resident</option>
</select> </div>
</label><button type="button" class="login-button">Login</button><a href="/register" class="register">Register
<span aria-hidden="true" class="triangle">▶</span></a><span class="service-links"><a href="/atoo_systemmaintenance" class="system-maintenance">System maintenance and issues</a><span
class="separator"></span><a href="/accessmanager" class="access-manager">Access manager</a></span> </div>
</div>
</section>
</div>
</div>
<div class="header-popup" role="dialog">
<div role="document"><button type="button" class="close popup-focus"><span class="icon" aria-hidden="true"></span><span class="sr-only">Close popup</span></button>
<section class="popup-content">
<div class="search"><span class="search-bar"><input type="text" aria-label="Search ato.gov.au" class="searchField" id="txt_banner_field" name="txt_banner_field"><button type="submit" class="searchButton" title="Submit search"
id="ctl00_searchBoxContainerDropZone_columnDisplay_ctl00_controlcolumn_ctl00_WidgetHost_WidgetHost_widget_ATO_SiteSearch1_btn_banner_search" onclick="" value="Search"
name="ctl00$searchBoxContainerDropZone$columnDisplay$ctl00$controlcolumn$ctl00$WidgetHost$WidgetHost_widget$ATO_SiteSearch1$btn_banner_search"><span class="glyphicon glyphicon-search" aria-hidden="true"></span><span
class="sr-only">Search</span></button></span> </div>
</section>
</div>
</div>
</div>
</div>
<div class="main-bar-stripe layout-stripe">
<div>
<div>
<div class="main-bar-stripe layout-stripe">
<div class="main-bar layout-content-box">
<div class="logo">
<h1><a href="/" title="Back to Australian Taxation Office homepage"><img border="0" src="/uploadedImages/Content/_DEM/Images/logo-ato.png" alt="Australian Taxation Office" id="ATOLogo" title="Australian Taxation Office logo"></a></h1>
</div>
<div class="search"><span class="search-bar"><span role="status" aria-live="polite" class="ui-helper-hidden-accessible"></span><input type="text" aria-label="Search ato.gov.au" class="searchField ui-autocomplete-input"
id="txt_banner_field" name="txt_banner_field" autocomplete="off" onkeypress=""><button type="submit" class="searchButton" title="Submit search"
id="ctl00_searchBoxContainerDropZone_columnDisplay_ctl00_controlcolumn_ctl00_WidgetHost_WidgetHost_widget_ATO_SiteSearch1_btn_banner_search"
onclick="return Parse_Banner_Search('Search ato.gov.au', 'NULL', 'NULL', 'ROBOTS:INDEX', '-ROBOTS:Index%20Only.-ROBOTS:Not%20Searchable', 'dc_date_filter', 'Results.aspx', 'ATO_Home', 'ato_gsacode', 'ato_reference_natNumber', 'DCTERMS_identifier');"
value="Search" name="ctl00$searchBoxContainerDropZone$columnDisplay$ctl00$controlcolumn$ctl00$WidgetHost$WidgetHost_widget$ATO_SiteSearch1$btn_banner_search"><span class="glyphicon glyphicon-search" aria-hidden="true"></span><span
class="sr-only">Search</span></button></span> </div>
</div>
</div>
</div>
</div>
</div>
<div class="main-nav-stripe layout-stripe hidden-xs">
<h2 class="sr-only">Main navigation</h2>
<div>
<nav aria-label="Main site navigation. Use left and right or tab to navigate." role="application menubar" id="mega-menu-desktop" class="main-nav layout-content-box" aria-activedescendant="dmm-link-0"
xmlns:msxsl="urn:schemas-microsoft-com:xslt">
<ul>
<li role="presentation"><a class="level-1" href="/" id="dmm-link-0" aria-atomic="true" tabindex="0" data-ordinal="0" role="menuitem link" aria-level="1">Home</a></li>
<li role="presentation">
<a class="level-1 active" href="/Individuals/" id="dmm-link-1" aria-selected="true" aria-atomic="true" tabindex="0" data-ordinal="1" role="menuitem link" aria-haspopup="true" aria-level="1">Individuals<span class="sr-only"> You are in this area.</span><span class="sr-only"> Press down to open, up to collapse.</span></a>
<div class="sublinks container-fluid" aria-label="Submenu of Individuals You are in this area.. Press up to collapse." role="menu">
<div class="row">
<div class="col-sm-4">
<h2><a class="level-2" href="/Individuals/Your-tax-return/In-detail/New-to-tax-and-super/" id="dmm-link-2" aria-atomic="true" tabindex="0" data-ordinal="2" role="menuitem heading link" aria-label="New to tax">New to tax</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Tax-file-number/Apply-for-a-TFN/" id="dmm-link-3" aria-atomic="true" tabindex="0" data-ordinal="3" role="menuitem heading link" aria-level="3" aria-label="How to apply for a TFN">How to apply for a TFN</a>
</li>
<li role="presentation">
<a href="/General/Online-services/Create-your-myGov-account-and-link-it-to-the-ATO/" id="dmm-link-4" aria-atomic="true" tabindex="0" data-ordinal="4" role="menuitem heading link" aria-level="3" aria-label="Create your myGov account and link it to the ATO">Create your myGov account and link it to the ATO</a>
</li>
<li role="presentation">
<a href="/Individuals/coming-to-australia-or-going-overseas/Your-tax-residency/" id="dmm-link-5" aria-atomic="true" tabindex="0" data-ordinal="5" role="menuitem heading link" aria-level="3" aria-label="Your tax residency">Your tax residency</a>
</li>
</ul>
<h2>
<a class="level-2" href="/Individuals/Jobs-and-employment-types/" id="dmm-link-6" aria-atomic="true" tabindex="0" data-ordinal="6" role="menuitem heading link" aria-label="Jobs and employment types">Jobs and employment types</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Jobs-and-employment-types/Working-as-an-employee/Income-from-more-than-one-job/" id="dmm-link-7" aria-atomic="true" tabindex="0" data-ordinal="7" role="menuitem heading link" aria-level="3" aria-label="Income from more than one job">Income from more than one job</a>
</li>
<li role="presentation">
<a href="/Individuals/Jobs-and-employment-types/Working-as-an-employee/Access-your-income-statement/" id="dmm-link-8" aria-atomic="true" tabindex="0" data-ordinal="8" role="menuitem heading link" aria-level="3" aria-label="Accessing your income statement">Accessing your income statement</a>
</li>
<li role="presentation">
<a href="/Rates/Individual-income-tax-rates/" id="dmm-link-9" aria-atomic="true" tabindex="0" data-ordinal="9" role="menuitem heading link" aria-level="3" aria-label="Individual income tax rates">Individual income tax rates</a>
</li>
<li role="presentation">
<a href="/Individuals/Tax-file-number/Lost-or-stolen-TFN/" id="dmm-link-10" aria-atomic="true" tabindex="0" data-ordinal="10" role="menuitem heading link" aria-level="3" aria-label="How to find your TFN">How to find your TFN</a>
</li>
<li role="presentation">
<a href="/Individuals/Tax-file-number/Update-your-TFN-registration-details/" id="dmm-link-11" aria-atomic="true" tabindex="0" data-ordinal="11" role="menuitem heading link" aria-level="3" aria-label="Update your TFN registration details">Update your TFN registration details</a>
</li>
</ul>
<h2>
<a class="level-2" href="/Individuals/Your-tax-return/Before-you-prepare-your-tax-return/" id="dmm-link-12" aria-atomic="true" tabindex="0" data-ordinal="12" role="menuitem heading link" aria-label="Your tax return">Your tax return</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Your-tax-return/Before-you-prepare-your-tax-return/" id="dmm-link-13" aria-atomic="true" tabindex="0" data-ordinal="13" role="menuitem heading link" aria-level="3" aria-label="Before you prepare your tax return">Before you prepare your tax return</a>
</li>
<li role="presentation">
<a href="/Individuals/Your-tax-return/How-to-lodge-your-tax-return/" id="dmm-link-14" aria-atomic="true" tabindex="0" data-ordinal="14" role="menuitem heading link" aria-level="3" aria-label="How to lodge your tax return">How to lodge your tax return</a>
</li>
<li role="presentation">
<a href="/Individuals/Your-tax-return/Help-and-support-to-lodge-your-tax-return/" id="dmm-link-15" aria-atomic="true" tabindex="0" data-ordinal="15" role="menuitem heading link" aria-level="3" aria-label="Help and support to lodge your tax return">Help and support to lodge your tax return</a>
</li>
<li role="presentation">
<a href="/Individuals/Your-tax-return/Check-the-progress-of-your-tax-return/" id="dmm-link-16" aria-atomic="true" tabindex="0" data-ordinal="16" role="menuitem heading link" aria-level="3" aria-label="Check the progress of your tax return">Check the progress of your tax return</a>
</li>
<li role="presentation">
<a href="/Individuals/Your-tax-return/Correct-(amend)-your-tax-return/" id="dmm-link-17" aria-atomic="true" tabindex="0" data-ordinal="17" role="menuitem heading link" aria-level="3" aria-label="Correct (amend) your tax return">Correct (amend) your tax return</a>
</li>
</ul>
</div>
<div class="col-sm-4">
<h2>
<a class="level-2" href="/Individuals/Income-and-deductions/" id="dmm-link-18" aria-atomic="true" tabindex="0" data-ordinal="18" role="menuitem heading link" aria-label="Income, deductions, offsets and records">Income, deductions, offsets and records</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Income-and-deductions/Income-you-must-declare/" id="dmm-link-19" aria-atomic="true" tabindex="0" data-ordinal="19" role="menuitem heading link" aria-level="3" aria-label="Income you must declare">Income you must declare</a>
</li>
<li role="presentation">
<a href="/Individuals/Income-and-deductions/Deductions-you-can-claim/" id="dmm-link-20" aria-atomic="true" tabindex="0" data-ordinal="20" role="menuitem heading link" aria-level="3" aria-label="Deductions you can claim">Deductions you can claim</a>
</li>
<li role="presentation">
<a href="/Individuals/Income-and-deductions/Deductions-you-can-claim/Home-office-expenses/" id="dmm-link-21" aria-atomic="true" tabindex="0" data-ordinal="21" role="menuitem heading link" aria-level="3" aria-label="Working from home expenses">Working from home expenses</a>
</li>
<li role="presentation">
<a href="/Individuals/Income-and-deductions/Occupation-and-industry-specific-guides/ " id="dmm-link-22" aria-atomic="true" tabindex="0" data-ordinal="22" role="menuitem heading link" aria-level="3" aria-label="Occupation and industry specific income and work-related expenses">Occupation and industry specific income and work-related expenses</a>
</li>
<li role="presentation">
<a href="/Individuals/Income-and-deductions/Offsets-and-rebates/" id="dmm-link-23" aria-atomic="true" tabindex="0" data-ordinal="23" role="menuitem heading link" aria-level="3" aria-label="Offsets and rebates">Offsets and rebates</a>
</li>
<li role="presentation">
<a href="/Individuals/Income-and-deductions/Records-you-need-to-keep/" id="dmm-link-24" aria-atomic="true" tabindex="0" data-ordinal="24" role="menuitem heading link" aria-level="3" aria-label="Records you need to keep">Records you need to keep</a>
</li>
</ul>
<h2><a class="level-2" href="/Individuals/Investments-and-assets/" id="dmm-link-25" aria-atomic="true" tabindex="0" data-ordinal="25" role="menuitem heading link" aria-label="Investments and assets">Investments and assets</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Investments-and-assets/Residential-rental-properties/" id="dmm-link-26" aria-atomic="true" tabindex="0" data-ordinal="26" role="menuitem heading link" aria-level="3" aria-label="Residential rental properties and holiday homes">Residential rental properties and holiday homes</a>
</li>
<li role="presentation">
<a href="/Individuals/Investments-and-assets/Investing-in-shares/" id="dmm-link-27" aria-atomic="true" tabindex="0" data-ordinal="27" role="menuitem heading link" aria-level="3" aria-label="Investing in shares">Investing in shares</a>
</li>
<li role="presentation">
<a href="/Individuals/Investments-and-assets/Crypto-asset-investments/" id="dmm-link-28" aria-atomic="true" tabindex="0" data-ordinal="28" role="menuitem heading link" aria-level="3" aria-label="Crypto asset investments">Crypto asset investments</a>
</li>
<li role="presentation">
<a href="/Individuals/Capital-gains-tax/" id="dmm-link-29" aria-atomic="true" tabindex="0" data-ordinal="29" role="menuitem heading link" aria-level="3" aria-label="Capital gains tax">Capital gains tax</a></li>
</ul>
<h2>
<a class="level-2" href="/Individuals/Medicare-and-private-health-insurance/" id="dmm-link-30" aria-atomic="true" tabindex="0" data-ordinal="30" role="menuitem heading link" aria-label="Medicare and private health insurance">Medicare and private health insurance</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Medicare-and-private-health-insurance/Medicare-levy/" id="dmm-link-31" aria-atomic="true" tabindex="0" data-ordinal="31" role="menuitem heading link" aria-level="3" aria-label="Medicare levy">Medicare levy</a>
</li>
<li role="presentation">
<a href="/Individuals/Medicare-and-private-health-insurance/Medicare-levy-surcharge/" id="dmm-link-32" aria-atomic="true" tabindex="0" data-ordinal="32" role="menuitem heading link" aria-level="3" aria-label="Medicare levy surcharge">Medicare levy surcharge</a>
</li>
</ul>
</div>
<div class="col-sm-4">
<h2>
<a class="level-2" href="/General/Paying-the-ATO/Help-with-paying/" id="dmm-link-33" aria-atomic="true" tabindex="0" data-ordinal="33" role="menuitem heading link" aria-label="Help and paying the ATO">Help and paying the ATO</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Your-tax-return/Check-the-progress-of-your-tax-return/Your-notice-of-assessment/" id="dmm-link-34" aria-atomic="true" tabindex="0" data-ordinal="34" role="menuitem heading link" aria-level="3" aria-label="Your notice of assessment">Your notice of assessment</a>
</li>
<li role="presentation">
<a href="/Individuals/Your-tax-return/Check-the-progress-of-your-tax-return/Why-you-may-receive-a-tax-bill/" id="dmm-link-35" aria-atomic="true" tabindex="0" data-ordinal="35" role="menuitem heading link" aria-level="3" aria-label="Why you may receive a tax bill">Why you may receive a tax bill</a>
</li>
<li role="presentation">
<a href="/General/Support-to-lodge-and-pay/Tax-Support/Tax-support-for-individuals/" id="dmm-link-36" aria-atomic="true" tabindex="0" data-ordinal="36" role="menuitem heading link" aria-level="3" aria-label="Tax support for individuals">Tax support for individuals</a>
</li>
</ul>
<h2>
<a class="level-2" href="/Individuals/Your-tax-return/In-detail/New-to-tax-and-super/" id="dmm-link-37" aria-atomic="true" tabindex="0" data-ordinal="37" role="menuitem heading link" aria-label="Your situation">Your situation</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Study-and-training-support-loans/" id="dmm-link-38" aria-atomic="true" tabindex="0" data-ordinal="38" role="menuitem heading link" aria-level="3" aria-label="Education and study loan">Education and study loan</a>
</li>
<li role="presentation"><a href="/Individuals/Deceased-estates/" id="dmm-link-39" aria-atomic="true" tabindex="0" data-ordinal="39" role="menuitem heading link" aria-level="3" aria-label="When someone dies">When someone dies</a>
</li>
<li role="presentation">
<a href="/Individuals/Jobs-and-employment-types/Working-as-an-employee/Leaving-the-workforce/" id="dmm-link-40" aria-atomic="true" tabindex="0" data-ordinal="40" role="menuitem heading link" aria-level="3" aria-label="Retirement and leaving your job">Retirement and leaving your job</a>
</li>
<li role="presentation">
<a href="/Individuals/Coming-to-Australia-or-going-overseas/" id="dmm-link-41" aria-atomic="true" tabindex="0" data-ordinal="41" role="menuitem heading link" aria-level="3" aria-label="Coming to Australia or going overseas">Coming to Australia or going overseas</a>
</li>
</ul>
<h2><a class="level-2" href="/Individuals/Super/" id="dmm-link-42" aria-atomic="true" tabindex="0" data-ordinal="42" role="menuitem heading link" aria-label="Super">Super</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Super/Growing-your-super/" id="dmm-link-43" aria-atomic="true" tabindex="0" data-ordinal="43" role="menuitem heading link" aria-level="3" aria-label="Growing your super">Growing your super</a></li>
<li role="presentation">
<a href="/Individuals/Super/Growing-your-super/Keeping-track-of-your-super/" id="dmm-link-44" aria-atomic="true" tabindex="0" data-ordinal="44" role="menuitem heading link" aria-level="3" aria-label="Keeping track of your super">Keeping track of your super</a>
</li>
<li role="presentation">
<a href="/Individuals/Super/Growing-your-super/Unpaid-super-from-your-employer/" id="dmm-link-45" aria-atomic="true" tabindex="0" data-ordinal="45" role="menuitem heading link" aria-level="3" aria-label="Unpaid super">Unpaid super</a>
</li>
<li role="presentation">
<a href="/Individuals/Super/Withdrawing-and-using-your-super/" id="dmm-link-46" aria-atomic="true" tabindex="0" data-ordinal="46" role="menuitem heading link" aria-level="3" aria-label="Withdrawing and using your super">Withdrawing and using your super</a>
</li>
</ul>
<h2><a class="level-2" href="/Key-links/?sorttype=SortByTopic" id="dmm-link-47" aria-atomic="true" tabindex="0" data-ordinal="47" role="menuitem heading link" aria-label="Key links">Key links</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Calculators-and-tools/?sorttype=SortByTitle" id="dmm-link-48" aria-atomic="true" tabindex="0" data-ordinal="48" role="menuitem heading link" aria-level="3" aria-label="Tools and calculators">Tools and calculators</a>
</li>
<li role="presentation">
<a href="/general/online-services/ato-app/mydeductions/" id="dmm-link-49" aria-atomic="true" tabindex="0" data-ordinal="49" role="menuitem heading link" aria-level="3" aria-label="myDeductions - how can it help">myDeductions - how can it help</a>
</li>
<li role="presentation"><a href="https://community.ato.gov.au/" id="dmm-link-50" aria-atomic="true" tabindex="0" data-ordinal="50" role="menuitem heading link" aria-level="3" aria-label="ATO community ">ATO community </a></li>
<li role="presentation">
<a href="/General/Online-services/Using-ATO-online-services/" id="dmm-link-51" aria-atomic="true" tabindex="0" data-ordinal="51" role="menuitem heading link" aria-level="3" aria-label="Using ATO online services">Using ATO online services</a>
</li>
<li role="presentation"><a href="/General/Other-languages/" id="dmm-link-52" aria-atomic="true" tabindex="0" data-ordinal="52" role="menuitem heading link" aria-level="3" aria-label="Other languages">Other languages</a></li>
<li role="presentation">
<a href="/Forms/?sorttype=SortByTopic&marketsegment=Entire Website" id="dmm-link-53" aria-atomic="true" tabindex="0" data-ordinal="53" role="menuitem heading link" aria-level="3" aria-label="Forms and instructions">Forms and instructions</a>
</li>
</ul>
</div>
</div>
</div>
</li>
<li role="presentation">
<a class="level-1" href="/Business/" id="dmm-link-54" aria-atomic="true" tabindex="0" data-ordinal="54" role="menuitem link" aria-haspopup="true" aria-level="1">Business<span class="sr-only"> Press down to open, up to collapse.</span></a>
<div class="sublinks container-fluid" aria-label="Submenu of Business. Press up to collapse." role="menu">
<div class="row">
<div class="col-sm-4">
<h2><a class="level-2" href="/Business/Registration/" id="dmm-link-55" aria-atomic="true" tabindex="0" data-ordinal="55" role="menuitem heading link" aria-label="Registration">Registration</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Business/Registration/Work-out-which-registrations-you-need/" id="dmm-link-56" aria-atomic="true" tabindex="0" data-ordinal="56" role="menuitem heading link" aria-level="3" aria-label="Work out which registrations you need">Work out which registrations you need</a>
</li>
<li role="presentation">
<a href="/Business/Registration/Update-your-details/" id="dmm-link-57" aria-atomic="true" tabindex="0" data-ordinal="57" role="menuitem heading link" aria-level="3" aria-label="Update your details">Update your details</a></li>
</ul>
<h2>
<a class="level-2" href="/Business/Business-activity-statements-(BAS)/" id="dmm-link-58" aria-atomic="true" tabindex="0" data-ordinal="58" role="menuitem heading link" aria-label="Business activity statement">Business activity statement</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Business/Business-activity-statements-(BAS)/How-to-lodge-your-BAS/" id="dmm-link-59" aria-atomic="true" tabindex="0" data-ordinal="59" role="menuitem heading link" aria-level="3" aria-label="How to lodge your BAS">How to lodge your BAS</a>
</li>
<li role="presentation">
<a href="/Business/Business-activity-statements-(BAS)/PAYG-instalments---how-to-complete-your-activity-statement/" id="dmm-link-60" aria-atomic="true" tabindex="0" data-ordinal="60" role="menuitem heading link" aria-level="3" aria-label="Pay as you go instalments">Pay as you go instalments</a>
</li>
<li role="presentation">
<a href="/Business/Business-activity-statements-(BAS)/Pay-as-you-go-(PAYG)-withholding/" id="dmm-link-61" aria-atomic="true" tabindex="0" data-ordinal="61" role="menuitem heading link" aria-level="3" aria-label="Pay as you go tax withheld">Pay as you go tax withheld</a>
</li>
<li role="presentation">
<a href="/Business/Business-activity-statements-(BAS)/Fringe-benefits-tax-(FBT)-instalment/" id="dmm-link-62" aria-atomic="true" tabindex="0" data-ordinal="62" role="menuitem heading link" aria-level="3" aria-label="Fringe benefits tax instalment">Fringe benefits tax instalment</a>
</li>
<li role="presentation">
<a href="/Business/Business-activity-statements-(BAS)/Luxury-car-tax-(LCT)/" id="dmm-link-63" aria-atomic="true" tabindex="0" data-ordinal="63" role="menuitem heading link" aria-level="3" aria-label="Luxury car tax">Luxury car tax</a>
</li>
<li role="presentation">
<a href="/Business/Business-activity-statements-(BAS)/Wine-equalisation-tax-(WET)/" id="dmm-link-64" aria-atomic="true" tabindex="0" data-ordinal="64" role="menuitem heading link" aria-level="3" aria-label="Wine equalisation tax">Wine equalisation tax</a>
</li>
<li role="presentation">
<a href="/Business/Business-activity-statements-(BAS)/Fuel-tax-credits/" id="dmm-link-65" aria-atomic="true" tabindex="0" data-ordinal="65" role="menuitem heading link" aria-level="3" aria-label="Fuel tax credits">Fuel tax credits</a>
</li>
<li role="presentation">
<a href="/Business/Business-activity-statements-(BAS)/Instalment-notices-for-GST-and-PAYG-instalments/" id="dmm-link-66" aria-atomic="true" tabindex="0" data-ordinal="66" role="menuitem heading link" aria-level="3" aria-label="Instalment notices for GST and PAYG instalments">Instalment notices for GST and PAYG instalments</a>
</li>
</ul>
<h2><a class="level-2" href="/Business/Single-Touch-Payroll/" id="dmm-link-67" aria-atomic="true" tabindex="0" data-ordinal="67" role="menuitem heading link" aria-label="Single Touch Payroll">Single Touch Payroll</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Business/Single-Touch-Payroll/Start-reporting/" id="dmm-link-68" aria-atomic="true" tabindex="0" data-ordinal="68" role="menuitem heading link" aria-level="3" aria-label="Start reporting">Start reporting</a></li>
<li role="presentation">
<a href="/Business/Single-Touch-Payroll/Concessional-reporting/" id="dmm-link-69" aria-atomic="true" tabindex="0" data-ordinal="69" role="menuitem heading link" aria-level="3" aria-label="Concessional reporting">Concessional reporting</a>
</li>
<li role="presentation">
<a href="/Business/Single-Touch-Payroll/Need-more-time/" id="dmm-link-70" aria-atomic="true" tabindex="0" data-ordinal="70" role="menuitem heading link" aria-level="3" aria-label="Need more time?">Need more time?</a></li>
<li role="presentation">
<a href="/Business/Single-Touch-Payroll/Single-Touch-Payroll-for-employees/" id="dmm-link-71" aria-atomic="true" tabindex="0" data-ordinal="71" role="menuitem heading link" aria-level="3" aria-label="Single Touch Payroll for employees">Single Touch Payroll for employees</a>
</li>
<li role="presentation">
<a href="/Business/Single-Touch-Payroll/News,-events-and-resources/" id="dmm-link-72" aria-atomic="true" tabindex="0" data-ordinal="72" role="menuitem heading link" aria-level="3" aria-label="News, events and resources">News, events and resources</a>
</li>
</ul>
</div>
<div class="col-sm-4">
<h2><a class="level-2" href="/general/online-services/" id="dmm-link-73" aria-atomic="true" tabindex="0" data-ordinal="73" role="menuitem heading link" aria-label="Online services">Online services</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation"><a href="/General/Online-services/Businesses/" id="dmm-link-74" aria-atomic="true" tabindex="0" data-ordinal="74" role="menuitem heading link" aria-level="3" aria-label="Businesses">Businesses</a></li>
<li role="presentation">
<a href="/General/Online-services/Technical-support/" id="dmm-link-75" aria-atomic="true" tabindex="0" data-ordinal="75" role="menuitem heading link" aria-level="3" aria-label="Technical support">Technical support</a></li>
<li role="presentation">
<a href="/General/Online-services/System-Maintenance/" id="dmm-link-76" aria-atomic="true" tabindex="0" data-ordinal="76" role="menuitem heading link" aria-level="3" aria-label="System maintenance ">System maintenance </a>
</li>
</ul>
<h2><a class="level-2" href="/General/Paying-the-ATO/" id="dmm-link-77" aria-atomic="true" tabindex="0" data-ordinal="77" role="menuitem heading link" aria-label="Paying the ATO">Paying the ATO</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation"><a href="/General/Paying-the-ATO/How-to-pay/" id="dmm-link-78" aria-atomic="true" tabindex="0" data-ordinal="78" role="menuitem heading link" aria-level="3" aria-label="How to pay">How to pay</a></li>
<li role="presentation">
<a href="/General/Paying-the-ATO/How-much-you-owe/" id="dmm-link-79" aria-atomic="true" tabindex="0" data-ordinal="79" role="menuitem heading link" aria-level="3" aria-label="How much you owe">How much you owe</a></li>
<li role="presentation">
<a href="/General/Paying-the-ATO/Help-with-paying/" id="dmm-link-80" aria-atomic="true" tabindex="0" data-ordinal="80" role="menuitem heading link" aria-level="3" aria-label="Help with paying">Help with paying</a></li>
<li role="presentation">
<a href="/General/Paying-the-ATO/If-you-don-t-pay/" id="dmm-link-81" aria-atomic="true" tabindex="0" data-ordinal="81" role="menuitem heading link" aria-level="3" aria-label="If you don't pay">If you don't pay</a></li>
</ul>
<h2><a class="level-2" href="/Key-links/?sorttype=SortByTopic" id="dmm-link-82" aria-atomic="true" tabindex="0" data-ordinal="82" role="menuitem heading link" aria-label="Key links">Key links</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation"><a href="/Business/eInvoicing/" id="dmm-link-83" aria-atomic="true" tabindex="0" data-ordinal="83" role="menuitem heading link" aria-level="3" aria-label="eInvoicing">eInvoicing</a></li>
<li role="presentation"><a href="/Rates/Tax-tables/" id="dmm-link-84" aria-atomic="true" tabindex="0" data-ordinal="84" role="menuitem heading link" aria-level="3" aria-label="Tax tables">Tax tables</a></li>
<li role="presentation"><a href="/Forms/" id="dmm-link-85" aria-atomic="true" tabindex="0" data-ordinal="85" role="menuitem heading link" aria-level="3" aria-label="Forms">Forms</a></li>
<li role="presentation">
<a href="/Business/Privately-owned-and-wealthy-groups/" id="dmm-link-86" aria-atomic="true" tabindex="0" data-ordinal="86" role="menuitem heading link" aria-level="3" aria-label="Privately owned and wealthy groups">Privately owned and wealthy groups</a>
</li>
<li role="presentation">
<a href="/Business/Public-business-and-international/" id="dmm-link-87" aria-atomic="true" tabindex="0" data-ordinal="87" role="menuitem heading link" aria-level="3" aria-label="Public business and international groups">Public business and international groups</a>
</li>
<li role="presentation"><a href="/business/large-business/" id="dmm-link-88" aria-atomic="true" tabindex="0" data-ordinal="88" role="menuitem heading link" aria-level="3" aria-label="Large business ">Large business </a></li>
<li role="presentation"><a href="/General/Trusts/" id="dmm-link-89" aria-atomic="true" tabindex="0" data-ordinal="89" role="menuitem heading link" aria-level="3" aria-label="Trusts">Trusts</a></li>
<li role="presentation">
<a href="/general/online-services/identity-security-and-scams/help-for-identity-theft/" id="dmm-link-90" aria-atomic="true" tabindex="0" data-ordinal="90" role="menuitem heading link" aria-level="3" aria-label="Help for identity theft">Help for identity theft</a>
</li>
<li role="presentation">
<a href="/General/Tax-avoidance-taskforce/" id="dmm-link-91" aria-atomic="true" tabindex="0" data-ordinal="91" role="menuitem heading link" aria-level="3" aria-label="Tax avoidance taskforce">Tax avoidance taskforce</a></li>
</ul>
</div>
<div class="col-sm-4">
<h2><a class="level-2" href="/Business/Bus/Supporting-your-small-business/" id="dmm-link-92" aria-atomic="true" tabindex="0" data-ordinal="92" role="menuitem heading link" aria-label="Small business">Small business</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Newsroom/smallbusiness/" id="dmm-link-93" aria-atomic="true" tabindex="0" data-ordinal="93" role="menuitem heading link" aria-level="3" aria-label="Small business newsroom">Small business newsroom</a></li>
<li role="presentation">
<a href="/Business/Starting-your-own-business/" id="dmm-link-94" aria-atomic="true" tabindex="0" data-ordinal="94" role="menuitem heading link" aria-level="3" aria-label="Starting your own business">Starting your own business</a>
</li>
<li role="presentation">
<a href="/About-ATO/Contact-us/Self-help-services/Business-self-service/" id="dmm-link-95" aria-atomic="true" tabindex="0" data-ordinal="95" role="menuitem heading link" aria-level="3" aria-label="Need tax help after hours?">Need tax help after hours?</a>
</li>
<li role="presentation">
<a href="/Business/Small-business-entity-concessions/" id="dmm-link-96" aria-atomic="true" tabindex="0" data-ordinal="96" role="menuitem heading link" aria-level="3" aria-label="Small business entity concessions">Small business entity concessions</a>
</li>
<li role="presentation">
<a href="/Business/Bus/Supporting-your-small-business/" id="dmm-link-97" aria-atomic="true" tabindex="0" data-ordinal="97" role="menuitem heading link" aria-level="3" aria-label="Supporting your small business">Supporting your small business</a>
</li>
</ul>
<h2>
<a class="level-2" href="/A-Z-index/AZItems.aspx?sorttype=AZIndex&marketsegment=Individuals" id="dmm-link-98" aria-atomic="true" tabindex="0" data-ordinal="98" role="menuitem heading link" aria-label="Key tax topics for business">Key tax topics for business</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Business/GST/" id="dmm-link-99" aria-atomic="true" tabindex="0" data-ordinal="99" role="menuitem heading link" aria-level="3" aria-label="Goods and services tax (GST)">Goods and services tax (GST)</a></li>
<li role="presentation">
<a href="/Business/Record-keeping-for-business/" id="dmm-link-100" aria-atomic="true" tabindex="0" data-ordinal="100" role="menuitem heading link" aria-level="3" aria-label="Record keeping for business">Record keeping for business</a>
</li>
<li role="presentation"><a href="/general/property/" id="dmm-link-101" aria-atomic="true" tabindex="0" data-ordinal="101" role="menuitem heading link" aria-level="3" aria-label="Buy or sell property">Buy or sell property</a>
</li>
<li role="presentation">
<a href="/General/Foreign-investment-in-Australia/" id="dmm-link-102" aria-atomic="true" tabindex="0" data-ordinal="102" role="menuitem heading link" aria-level="3" aria-label="Foreign investment in Australia">Foreign investment in Australia</a>
</li>
<li role="presentation">
<a href="/Business/Capital-gains-tax-for-business-assets/" id="dmm-link-103" aria-atomic="true" tabindex="0" data-ordinal="103" role="menuitem heading link" aria-level="3" aria-label="Capital gains tax (CGT)">Capital gains tax (CGT)</a>
</li>
<li role="presentation">
<a href="/Business/Fringe-benefits-tax/" id="dmm-link-104" aria-atomic="true" tabindex="0" data-ordinal="104" role="menuitem heading link" aria-level="3" aria-label="Fringe benefits tax (FBT)">Fringe benefits tax (FBT)</a>
</li>
<li role="presentation"><a href="/Business/Fuel-schemes/" id="dmm-link-105" aria-atomic="true" tabindex="0" data-ordinal="105" role="menuitem heading link" aria-level="3" aria-label="Fuel schemes">Fuel schemes</a></li>
<li role="presentation">
<a href="/business/business-bulletins-newsroom/" id="dmm-link-106" aria-atomic="true" tabindex="0" data-ordinal="106" role="menuitem heading link" aria-level="3" aria-label="Business bulletins newsroom">Business bulletins newsroom</a>
</li>
<li role="presentation">
<a href="/Business/Income-and-deductions-for-business/" id="dmm-link-107" aria-atomic="true" tabindex="0" data-ordinal="107" role="menuitem heading link" aria-level="3" aria-label="Income and deductions for business">Income and deductions for business</a>
</li>
<li role="presentation"><a href="/Business/PAYG-withholding/" id="dmm-link-108" aria-atomic="true" tabindex="0" data-ordinal="108" role="menuitem heading link" aria-level="3" aria-label="PAYG withholding">PAYG withholding</a>
</li>
<li role="presentation">
<a href="/Business/Super-for-employers/" id="dmm-link-109" aria-atomic="true" tabindex="0" data-ordinal="109" role="menuitem heading link" aria-level="3" aria-label="Super for employers">Super for employers</a></li>
<li role="presentation">
<a href="/Business/Reports-and-returns/" id="dmm-link-110" aria-atomic="true" tabindex="0" data-ordinal="110" role="menuitem heading link" aria-level="3" aria-label="Reports and returns">Reports and returns</a></li>
<li role="presentation"><a href="/Business/Engaging-a-worker/" id="dmm-link-111" aria-atomic="true" tabindex="0" data-ordinal="111" role="menuitem heading link" aria-level="3" aria-label="Engaging a worker">Engaging a worker</a>
</li>
<li role="presentation">
<a href="/A-Z-index/AZItems.aspx?sorttype=AZIndex&marketsegment=Entire website" id="dmm-link-112" aria-atomic="true" tabindex="0" data-ordinal="112" role="menuitem heading link" aria-level="3" aria-label="Tax topics (A to Z)">Tax topics (A to Z)</a>
</li>
</ul>
</div>
</div>
</div>
</li>
<li role="presentation">
<a class="level-1" href="/Non-profit/" id="dmm-link-113" aria-atomic="true" tabindex="0" data-ordinal="113" role="menuitem link" aria-haspopup="true" aria-level="1">Not-for-profit<span class="sr-only"> Press down to open, up to collapse.</span></a>
<div class="sublinks container-fluid" aria-label="Submenu of Not-for-profit. Press up to collapse." role="menu">
<div class="row">
<div class="col-sm-4">
<h2><a class="level-2" href="/Non-profit/Getting-started/" id="dmm-link-114" aria-atomic="true" tabindex="0" data-ordinal="114" role="menuitem heading link" aria-label="Getting started">Getting started</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Non-profit/Getting-started/Starting-an-NFP/" id="dmm-link-115" aria-atomic="true" tabindex="0" data-ordinal="115" role="menuitem heading link" aria-level="3" aria-label="Starting an NFP">Starting an NFP</a></li>
<li role="presentation">
<a href="/Non-profit/Getting-started/Know-your-legal-structure/" id="dmm-link-116" aria-atomic="true" tabindex="0" data-ordinal="116" role="menuitem heading link" aria-level="3" aria-label="Know your legal structure">Know your legal structure</a>
</li>
<li role="presentation">
<a href="/Non-profit/Getting-started/What-type-of-NFP-is-your-organisation-/" id="dmm-link-117" aria-atomic="true" tabindex="0" data-ordinal="117" role="menuitem heading link" aria-level="3" aria-label="What type of NFP is your organisation?">What type of NFP is your organisation?</a>
</li>
<li role="presentation">
<a href="/Non-profit/Getting-started/Tax-concessions-for-not-for-profits/" id="dmm-link-118" aria-atomic="true" tabindex="0" data-ordinal="118" role="menuitem heading link" aria-level="3" aria-label="What tax concessions are available?">What tax concessions are available?</a>
</li>
<li role="presentation">
<a href="/Non-profit/Getting-started/Register-your-NFP/" id="dmm-link-119" aria-atomic="true" tabindex="0" data-ordinal="119" role="menuitem heading link" aria-level="3" aria-label="Register your NFP">Register your NFP</a>
</li>
<li role="presentation">
<a href="/Non-profit/Getting-started/Other-registrations-for-not-for-profits/" id="dmm-link-120" aria-atomic="true" tabindex="0" data-ordinal="120" role="menuitem heading link" aria-level="3" aria-label="Other registrations">Other registrations</a>
</li>
<li role="presentation">
<a href="/Non-profit/Getting-started/Getting-endorsed-for-tax-concessions-or-as-a-DGR/" id="dmm-link-121" aria-atomic="true" tabindex="0" data-ordinal="121" role="menuitem heading link" aria-level="3" aria-label="Getting endorsed">Getting endorsed</a>
</li>
</ul>
<h2>
<a class="level-2" href="/Non-profit/Types-of-Not-for-profit-workers/" id="dmm-link-122" aria-atomic="true" tabindex="0" data-ordinal="122" role="menuitem heading link" aria-label="Types of Not-for-profit workers">Types of Not-for-profit workers</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Non-profit/Types-of-Not-for-profit-workers/Your-obligations-to-workers-and-independent-contractors/" id="dmm-link-123" aria-atomic="true" tabindex="0" data-ordinal="123" role="menuitem heading link" aria-level="3" aria-label="Your obligations to workers and independent contractors">Your obligations to workers and independent contractors</a>
</li>
<li role="presentation">
<a href="/Non-profit/Types-of-Not-for-profit-workers/Not-for-profit-volunteers/" id="dmm-link-124" aria-atomic="true" tabindex="0" data-ordinal="124" role="menuitem heading link" aria-level="3" aria-label="Not-for-profit volunteers">Not-for-profit volunteers</a>
</li>
</ul>
<h2><a class="level-2" href="/general/online-services/" id="dmm-link-125" aria-atomic="true" tabindex="0" data-ordinal="125" role="menuitem heading link" aria-label="Online services">Online services</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/General/Online-services/Online-security/" id="dmm-link-126" aria-atomic="true" tabindex="0" data-ordinal="126" role="menuitem heading link" aria-level="3" aria-label="Online security">Online security</a></li>
<li role="presentation">
<a href="/General/Online-services/Technical-support/" id="dmm-link-127" aria-atomic="true" tabindex="0" data-ordinal="127" role="menuitem heading link" aria-level="3" aria-label="Technical support">Technical support</a></li>
<li role="presentation">
<a href="/General/Online-services/System-Maintenance/" id="dmm-link-128" aria-atomic="true" tabindex="0" data-ordinal="128" role="menuitem heading link" aria-level="3" aria-label="System maintenance">System maintenance</a>
</li>
</ul>
</div>
<div class="col-sm-4">
<h2><a class="level-2" href="/Non-profit/Gifts-and-fundraising/" id="dmm-link-129" aria-atomic="true" tabindex="0" data-ordinal="129" role="menuitem heading link" aria-label="Gifts and fundraising">Gifts and fundraising</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Non-profit/Gifts-and-fundraising/Receiving-tax-deductible-gifts/" id="dmm-link-130" aria-atomic="true" tabindex="0" data-ordinal="130" role="menuitem heading link" aria-level="3" aria-label="Receiving tax-deductible gifts">Receiving tax-deductible gifts</a>
</li>
<li role="presentation">
<a href="/Non-profit/Gifts-and-fundraising/Tax-deductible-donations/" id="dmm-link-131" aria-atomic="true" tabindex="0" data-ordinal="131" role="menuitem heading link" aria-level="3" aria-label="Tax deductible donations">Tax deductible donations</a>
</li>
<li role="presentation">
<a href="/Non-profit/Gifts-and-fundraising/Valuing-contributions-and-minor-benefits/" id="dmm-link-132" aria-atomic="true" tabindex="0" data-ordinal="132" role="menuitem heading link" aria-level="3" aria-label="Valuing contributions and minor benefits">Valuing contributions and minor benefits</a>
</li>
<li role="presentation">
<a href="/Non-profit/Gifts-and-fundraising/Fundraising-events/" id="dmm-link-133" aria-atomic="true" tabindex="0" data-ordinal="133" role="menuitem heading link" aria-level="3" aria-label="Fundraising events">Fundraising events</a>
</li>
<li role="presentation">
<a href="/Non-profit/Gifts-and-fundraising/Workplace-and-business-support/" id="dmm-link-134" aria-atomic="true" tabindex="0" data-ordinal="134" role="menuitem heading link" aria-level="3" aria-label="Workplace and business support">Workplace and business support</a>
</li>
<li role="presentation">
<a href="/Non-profit/Gifts-and-fundraising/Tax-and-fundraising/" id="dmm-link-135" aria-atomic="true" tabindex="0" data-ordinal="135" role="menuitem heading link" aria-level="3" aria-label="Tax and fundraising">Tax and fundraising</a>
</li>
<li role="presentation">
<a href="/Non-profit/Gifts-and-fundraising/Helping-in-a-disaster/" id="dmm-link-136" aria-atomic="true" tabindex="0" data-ordinal="136" role="menuitem heading link" aria-level="3" aria-label="Helping in a disaster">Helping in a disaster</a>
</li>
<li role="presentation">
<a href="/Non-profit/Gifts-and-fundraising/Gifts-and-fundraising-for-non-DGRs/" id="dmm-link-137" aria-atomic="true" tabindex="0" data-ordinal="137" role="menuitem heading link" aria-level="3" aria-label="Gifts and fundraising for non-DGRs">Gifts and fundraising for non-DGRs</a>
</li>
</ul>
<h2><a class="level-2" href="/Non-profit/statements-and-returns/" id="dmm-link-138" aria-atomic="true" tabindex="0" data-ordinal="138" role="menuitem heading link" aria-label="Statements and returns">Statements and returns</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Non-profit/Statements-and-returns/Activity-statements-for-not-for-profits/" id="dmm-link-139" aria-atomic="true" tabindex="0" data-ordinal="139" role="menuitem heading link" aria-level="3" aria-label="Activity statements">Activity statements</a>
</li>
<li role="presentation">
<a href="/Non-profit/Statements-and-returns/Annual-GST-returns-for-not-for-profits/" id="dmm-link-140" aria-atomic="true" tabindex="0" data-ordinal="140" role="menuitem heading link" aria-level="3" aria-label="Annual GST returns">Annual GST returns</a>
</li>
<li role="presentation">
<a href="/business/fringe-benefits-tax/fbt-registration,-lodgment,-payment-and-reporting/lodging-your-fbt-return-and-paying/" id="dmm-link-141" aria-atomic="true" tabindex="0" data-ordinal="141" role="menuitem heading link" aria-level="3" aria-label="Fringe benefits tax returns">Fringe benefits tax returns</a>
</li>
<li role="presentation">
<a href="/Non-profit/Statements-and-returns/PAYG-withholding-for-not-for-profits/" id="dmm-link-142" aria-atomic="true" tabindex="0" data-ordinal="142" role="menuitem heading link" aria-level="3" aria-label="PAYG withholding">PAYG withholding</a>
</li>
<li role="presentation">
<a href="/Non-profit/Statements-and-returns/Income-tax-returns-for-not-for-profits/" id="dmm-link-143" aria-atomic="true" tabindex="0" data-ordinal="143" role="menuitem heading link" aria-level="3" aria-label="Income tax returns">Income tax returns</a>
</li>
<li role="presentation">
<a href="/Non-profit/Statements-and-returns/Ancillary-fund-returns/" id="dmm-link-144" aria-atomic="true" tabindex="0" data-ordinal="144" role="menuitem heading link" aria-level="3" aria-label="Ancillary fund returns">Ancillary fund returns</a>
</li>
<li role="presentation">
<a href="/Non-profit/Statements-and-returns/Franking-credit-refunds/" id="dmm-link-145" aria-atomic="true" tabindex="0" data-ordinal="145" role="menuitem heading link" aria-level="3" aria-label="Franking credit refunds">Franking credit refunds</a>
</li>
<li role="presentation">
<a href="/Non-profit/Statements-and-returns/Not-for-profits-and-the-Common-Reporting-Standard/" id="dmm-link-146" aria-atomic="true" tabindex="0" data-ordinal="146" role="menuitem heading link" aria-level="3" aria-label="Common Reporting Standard">Common Reporting Standard</a>
</li>
<li role="presentation">
<a href="/Individuals/Investments-and-assets/In-detail/Rental-affordability-schemes/National-rental-affordability-scheme---refundable-tax-offset-and-other-taxation-issues/" id="dmm-link-147" aria-atomic="true" tabindex="0" data-ordinal="147" role="menuitem heading link" aria-level="3" aria-label="National rental affordability scheme">National rental affordability scheme</a>
</li>
</ul>
</div>
<div class="col-sm-4">
<h2><a class="level-2" href="/Non-profit/Your-organisation/" id="dmm-link-148" aria-atomic="true" tabindex="0" data-ordinal="148" role="menuitem heading link" aria-label="Your organisation">Your organisation</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Non-profit/Your-organisation/Does-my-not-for-profit-need-to-pay-income-tax-/" id="dmm-link-149" aria-atomic="true" tabindex="0" data-ordinal="149" role="menuitem heading link" aria-level="3" aria-label="Do you have to pay income tax?">Do you have to pay income tax?</a>
</li>
<li role="presentation"><a href="/Non-profit/Your-organisation/GST-for-not-for-profits/" id="dmm-link-150" aria-atomic="true" tabindex="0" data-ordinal="150" role="menuitem heading link" aria-level="3" aria-label="GST">GST</a>
</li>
<li role="presentation">
<a href="/Non-profit/Your-organisation/Dealing-with-suppliers/" id="dmm-link-151" aria-atomic="true" tabindex="0" data-ordinal="151" role="menuitem heading link" aria-level="3" aria-label="Dealing with suppliers">Dealing with suppliers</a>
</li>
<li role="presentation">
<a href="/Non-profit/Your-organisation/Investments,-credits-and-refunds/" id="dmm-link-152" aria-atomic="true" tabindex="0" data-ordinal="152" role="menuitem heading link" aria-level="3" aria-label="Investments, credits and refunds">Investments, credits and refunds</a>
</li>
<li role="presentation">
<a href="/Non-profit/Your-organisation/Records,-reporting-and-paying-tax/" id="dmm-link-153" aria-atomic="true" tabindex="0" data-ordinal="153" role="menuitem heading link" aria-level="3" aria-label="Records, reporting and paying tax">Records, reporting and paying tax</a>
</li>
<li role="presentation">
<a href="/Non-profit/Your-organisation/State-and-territory-requirements-for-not-for-profits/" id="dmm-link-154" aria-atomic="true" tabindex="0" data-ordinal="154" role="menuitem heading link" aria-level="3" aria-label="State and territory taxes">State and territory taxes</a>
</li>
<li role="presentation">
<a href="/Non-profit/Your-organisation/Changes-to-your-organisation/" id="dmm-link-155" aria-atomic="true" tabindex="0" data-ordinal="155" role="menuitem heading link" aria-level="3" aria-label="Changes to your organisation">Changes to your organisation</a>
</li>
</ul>
<h2><a class="level-2" href="/Key-links/?sorttype=SortByTopic" id="dmm-link-156" aria-atomic="true" tabindex="0" data-ordinal="156" role="menuitem heading link" aria-label="Key links">Key links</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/non-profit/newsroom/" id="dmm-link-157" aria-atomic="true" tabindex="0" data-ordinal="157" role="menuitem heading link" aria-level="3" aria-label="Not-for-profit newsroom">Not-for-profit newsroom</a></li>
<li role="presentation">
<a href="/Non-profit/Getting-started/In-detail/Getting-help-for-not-for-profits/" id="dmm-link-158" aria-atomic="true" tabindex="0" data-ordinal="158" role="menuitem heading link" aria-level="3" aria-label="Getting help">Getting help</a>
</li>
<li role="presentation">
<a href="/Non-profit/Your-organisation/In-detail/Encouraging-NFP-participation-in-the-tax-system/" id="dmm-link-159" aria-atomic="true" tabindex="0" data-ordinal="159" role="menuitem heading link" aria-level="3" aria-label="Encouraging NFP participation in the tax system">Encouraging NFP participation in the tax system</a>
</li>
<li role="presentation">
<a href="/Non-profit/Getting-started/In-detail/Induction-package/Induction-package-for-not-for-profit-administrators/" id="dmm-link-160" aria-atomic="true" tabindex="0" data-ordinal="160" role="menuitem heading link" aria-level="3" aria-label="Induction package for administrators">Induction package for administrators</a>
</li>
<li role="presentation">
<a href="/General/Consultation/Consultation-groups/Stewardship-groups/Not-for-profit-Stewardship-Group/" id="dmm-link-161" aria-atomic="true" tabindex="0" data-ordinal="161" role="menuitem heading link" aria-level="3" aria-label="Not-for-profit Stewardship Group">Not-for-profit Stewardship Group</a>
</li>
<li role="presentation">
<a href="https://www.acnc.gov.au/" id="dmm-link-162" aria-atomic="true" tabindex="0" data-ordinal="162" role="menuitem heading link" aria-level="3" aria-label="Australian Charities and Not-for-profits Commission">Australian Charities and Not-for-profits Commission</a>
</li>
</ul>
<h2><a class="level-2" href="/General/Paying-the-ATO/" id="dmm-link-163" aria-atomic="true" tabindex="0" data-ordinal="163" role="menuitem heading link" aria-label="Paying the ATO">Paying the ATO</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation"><a href="/General/Paying-the-ATO/How-to-pay/" id="dmm-link-164" aria-atomic="true" tabindex="0" data-ordinal="164" role="menuitem heading link" aria-level="3" aria-label="How to pay">How to pay</a></li>
<li role="presentation">
<a href="/General/Paying-the-ATO/How-much-you-owe/" id="dmm-link-165" aria-atomic="true" tabindex="0" data-ordinal="165" role="menuitem heading link" aria-level="3" aria-label="How much you owe">How much you owe</a></li>
<li role="presentation">
<a href="/General/Paying-the-ATO/Help-with-paying/" id="dmm-link-166" aria-atomic="true" tabindex="0" data-ordinal="166" role="menuitem heading link" aria-level="3" aria-label="Help with paying">Help with paying</a></li>
<li role="presentation">
<a href="/General/Paying-the-ATO/If-you-don-t-pay/" id="dmm-link-167" aria-atomic="true" tabindex="0" data-ordinal="167" role="menuitem heading link" aria-level="3" aria-label="If you don't pay">If you don't pay</a></li>
</ul>
</div>
</div>
</div>
</li>
<li role="presentation">
<a class="level-1" href="/Super/" id="dmm-link-168" aria-atomic="true" tabindex="0" data-ordinal="168" role="menuitem link" aria-haspopup="true" aria-level="1">Super<span class="sr-only"> Press down to open, up to collapse.</span></a>
<div class="sublinks container-fluid" aria-label="Submenu of Super. Press up to collapse." role="menu">
<div class="row">
<div class="col-sm-4">
<h2><a class="level-2" href="/Individuals/Super/" id="dmm-link-169" aria-atomic="true" tabindex="0" data-ordinal="169" role="menuitem heading link" aria-label="Super for individuals">Super for individuals</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Individuals/Super/Getting-your-super-started/" id="dmm-link-170" aria-atomic="true" tabindex="0" data-ordinal="170" role="menuitem heading link" aria-level="3" aria-label="Getting your super started">Getting your super started</a>
</li>
<li role="presentation">
<a href="/Calculators-and-tools/YourSuper-comparison-tool/" id="dmm-link-171" aria-atomic="true" tabindex="0" data-ordinal="171" role="menuitem heading link" aria-level="3" aria-label="Access the YourSuper comparison tool">Access the YourSuper comparison tool</a>
</li>
<li role="presentation">
<a href="/Individuals/Super/Growing-your-super/" id="dmm-link-172" aria-atomic="true" tabindex="0" data-ordinal="172" role="menuitem heading link" aria-level="3" aria-label="Growing your super">Growing your super</a></li>
<li role="presentation">
<a href="/Individuals/Super/Growing-your-super/Keeping-track-of-your-super/" id="dmm-link-173" aria-atomic="true" tabindex="0" data-ordinal="173" role="menuitem heading link" aria-level="3" aria-label="Keeping track of your super">Keeping track of your super</a>
</li>
<li role="presentation">
<a href="/Individuals/Super/Growing-your-super/Unpaid-super-from-your-employer/" id="dmm-link-174" aria-atomic="true" tabindex="0" data-ordinal="174" role="menuitem heading link" aria-level="3" aria-label="Unpaid super">Unpaid super</a>
</li>
<li role="presentation">
<a href="/Individuals/Super/Withdrawing-and-using-your-super/" id="dmm-link-175" aria-atomic="true" tabindex="0" data-ordinal="175" role="menuitem heading link" aria-level="3" aria-label="Withdrawing and using your super">Withdrawing and using your super</a>
</li>
</ul>
<h2><a class="level-2" href="/Super/APRA-regulated-funds/" id="dmm-link-176" aria-atomic="true" tabindex="0" data-ordinal="176" role="menuitem heading link" aria-label="APRA-regulated funds">APRA-regulated funds</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Super/APRA-regulated-funds/News-and-alerts-for-APRA-regulated-funds/" id="dmm-link-177" aria-atomic="true" tabindex="0" data-ordinal="177" role="menuitem heading link" aria-level="3" aria-label="News and alerts for APRA-regulated funds">News and alerts for APRA-regulated funds</a>
</li>
<li role="presentation">
<a href="/Super/APRA-regulated-funds/Services-and-support/" id="dmm-link-178" aria-atomic="true" tabindex="0" data-ordinal="178" role="menuitem heading link" aria-level="3" aria-label="Services and support">Services and support</a>
</li>
<li role="presentation">
<a href="/Super/APRA-regulated-funds/Reporting-and-lodgment-dates/" id="dmm-link-179" aria-atomic="true" tabindex="0" data-ordinal="179" role="menuitem heading link" aria-level="3" aria-label="Reporting and lodgment dates">Reporting and lodgment dates</a>
</li>
<li role="presentation">
<a href="/Super/APRA-regulated-funds/Fund-reporting-protocol/" id="dmm-link-180" aria-atomic="true" tabindex="0" data-ordinal="180" role="menuitem heading link" aria-level="3" aria-label="Fund reporting protocol ">Fund reporting protocol </a>
</li>
<li role="presentation">
<a href="/Super/APRA-regulated-funds/Reporting-and-administrative-obligations/" id="dmm-link-181" aria-atomic="true" tabindex="0" data-ordinal="181" role="menuitem heading link" aria-level="3" aria-label="Reporting and administrative obligations">Reporting and administrative obligations</a>
</li>
<li role="presentation">
<a href="/Super/APRA-regulated-funds/Managing-member-benefits/" id="dmm-link-182" aria-atomic="true" tabindex="0" data-ordinal="182" role="menuitem heading link" aria-level="3" aria-label="Managing member benefits">Managing member benefits</a>
</li>
<li role="presentation">
<a href="/Super/APRA-regulated-funds/Paying-benefits/" id="dmm-link-183" aria-atomic="true" tabindex="0" data-ordinal="183" role="menuitem heading link" aria-level="3" aria-label="Paying benefits">Paying benefits</a></li>
</ul>
</div>
<div class="col-sm-4">
<h2><a class="level-2" href="/Business/Super-for-employers/" id="dmm-link-184" aria-atomic="true" tabindex="0" data-ordinal="184" role="menuitem heading link" aria-label="Super for employers ">Super for employers </a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Business/super-for-employers/work-out-if-you-have-to-pay-super/" id="dmm-link-185" aria-atomic="true" tabindex="0" data-ordinal="185" role="menuitem heading link" aria-level="3" aria-label="Work out if you have to pay super">Work out if you have to pay super</a>
</li>
<li role="presentation">
<a href="/Business/super-for-employers/setting-up-super-for-your-business/" id="dmm-link-186" aria-atomic="true" tabindex="0" data-ordinal="186" role="menuitem heading link" aria-level="3" aria-label="Setting up super for your business">Setting up super for your business</a>
</li>
<li role="presentation">
<a href="/Business/super-for-employers/paying-super-contributions/" id="dmm-link-187" aria-atomic="true" tabindex="0" data-ordinal="187" role="menuitem heading link" aria-level="3" aria-label="Paying super contributions">Paying super contributions</a>
</li>
<li role="presentation">
<a href="/Business/super-for-employers/missed-and-late-super-guarantee-payments/" id="dmm-link-188" aria-atomic="true" tabindex="0" data-ordinal="188" role="menuitem heading link" aria-level="3" aria-label="Missed and late super guarantee payments">Missed and late super guarantee payments</a>
</li>
</ul>
<h2><a class="level-2" href="/Super/SuperStream/" id="dmm-link-189" aria-atomic="true" tabindex="0" data-ordinal="189" role="menuitem heading link" aria-label="SuperStream">SuperStream</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Business/super-for-employers/paying-super-contributions/how-to-pay-super/superstream-for-employers/" id="dmm-link-190" aria-atomic="true" tabindex="0" data-ordinal="190" role="menuitem heading link" aria-level="3" aria-label="SuperStream for employers">SuperStream for employers</a>
</li>
<li role="presentation">
<a href="/Super/SuperStream/Self-managed-super-funds/" id="dmm-link-191" aria-atomic="true" tabindex="0" data-ordinal="191" role="menuitem heading link" aria-level="3" aria-label="SuperStream for SMSFs ">SuperStream for SMSFs </a>
</li>
<li role="presentation">
<a href="/Super/SuperStream/APRA-regulated-funds/" id="dmm-link-192" aria-atomic="true" tabindex="0" data-ordinal="192" role="menuitem heading link" aria-level="3" aria-label="SuperStream for APRA-regulated funds">SuperStream for APRA-regulated funds</a>
</li>
</ul>
<h2><a class="level-2" href="/general/online-services/" id="dmm-link-193" aria-atomic="true" tabindex="0" data-ordinal="193" role="menuitem heading link" aria-label="Online services">Online services</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/General/Online-services/Online-security/" id="dmm-link-194" aria-atomic="true" tabindex="0" data-ordinal="194" role="menuitem heading link" aria-level="3" aria-label="Online security">Online security</a></li>
<li role="presentation">
<a href="/General/Online-services/Technical-support/" id="dmm-link-195" aria-atomic="true" tabindex="0" data-ordinal="195" role="menuitem heading link" aria-level="3" aria-label="Technical support">Technical support</a></li>
<li role="presentation">
<a href="/General/Online-services/System-Maintenance/" id="dmm-link-196" aria-atomic="true" tabindex="0" data-ordinal="196" role="menuitem heading link" aria-level="3" aria-label="System maintenance">System maintenance</a>
</li>
</ul>
</div>
<div class="col-sm-4">
<h2><a class="level-2" href="/Super/Self-managed-super-funds/" id="dmm-link-197" aria-atomic="true" tabindex="0" data-ordinal="197" role="menuitem heading link" aria-label="Self-managed super funds">Self-managed super funds</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Super/Self-managed-super-funds/News-and-alerts/" id="dmm-link-198" aria-atomic="true" tabindex="0" data-ordinal="198" role="menuitem heading link" aria-level="3" aria-label="News and alerts">News and alerts</a></li>
<li role="presentation">
<a href="/Super/Self-managed-super-funds/Thinking-about-self-managed-super/" id="dmm-link-199" aria-atomic="true" tabindex="0" data-ordinal="199" role="menuitem heading link" aria-level="3" aria-label="Thinking about self-managed super">Thinking about self-managed super</a>
</li>
<li role="presentation">
<a href="/Super/Self-managed-super-funds/Setting-up/" id="dmm-link-200" aria-atomic="true" tabindex="0" data-ordinal="200" role="menuitem heading link" aria-level="3" aria-label="Setting up">Setting up</a></li>
<li role="presentation">
<a href="/Super/Self-managed-super-funds/Contributions-and-rollovers/" id="dmm-link-201" aria-atomic="true" tabindex="0" data-ordinal="201" role="menuitem heading link" aria-level="3" aria-label="Contributions and rollovers">Contributions and rollovers</a>
</li>
<li role="presentation"><a href="/Super/Self-managed-super-funds/Investing/" id="dmm-link-202" aria-atomic="true" tabindex="0" data-ordinal="202" role="menuitem heading link" aria-level="3" aria-label="Investing">Investing</a>
</li>
<li role="presentation">
<a href="/Super/Self-managed-super-funds/Paying-benefits/" id="dmm-link-203" aria-atomic="true" tabindex="0" data-ordinal="203" role="menuitem heading link" aria-level="3" aria-label="Paying benefits">Paying benefits</a></li>
<li role="presentation">
<a href="/Super/Self-managed-super-funds/Winding-up/" id="dmm-link-204" aria-atomic="true" tabindex="0" data-ordinal="204" role="menuitem heading link" aria-level="3" aria-label="Winding up">Winding up</a></li>
<li role="presentation">
<a href="/Super/Self-managed-super-funds/Administering-and-reporting/" id="dmm-link-205" aria-atomic="true" tabindex="0" data-ordinal="205" role="menuitem heading link" aria-level="3" aria-label="Administering and reporting">Administering and reporting</a>
</li>
<li role="presentation">
<a href="/Super/Self-managed-super-funds/SMSF-auditors/" id="dmm-link-206" aria-atomic="true" tabindex="0" data-ordinal="206" role="menuitem heading link" aria-level="3" aria-label="SMSF auditors ">SMSF auditors </a></li>
</ul>
<h2><a class="level-2" href="/Key-links/?sorttype=SortByTopic" id="dmm-link-207" aria-atomic="true" tabindex="0" data-ordinal="207" role="menuitem heading link" aria-label="Key links">Key links</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/individuals/super/in-detail/temporary-residents-and-super/super-information-for-temporary-residents-departing-australia/" id="dmm-link-208" aria-atomic="true" tabindex="0" data-ordinal="208" role="menuitem heading link" aria-level="3" aria-label="Departing Australia Superannuation Payment">Departing Australia Superannuation Payment</a>
</li>
<li role="presentation">
<a href="/Business/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house/" id="dmm-link-209" aria-atomic="true" tabindex="0" data-ordinal="209" role="menuitem heading link" aria-level="3" aria-label="Small Business Superannuation Clearing House">Small Business Superannuation Clearing House</a>
</li>
<li role="presentation">
<a href="/Individuals/Super/In-detail/Withdrawing-and-using-your-super/Illegal-early-access-to-super/" id="dmm-link-210" aria-atomic="true" tabindex="0" data-ordinal="210" role="menuitem heading link" aria-level="3" aria-label="Illegal super schemes">Illegal super schemes</a>
</li>
</ul>
<h2>
<a class="level-2" href="/A-Z-index/AZItems.aspx?sorttype=AZIndex&marketsegment=Individuals" id="dmm-link-211" aria-atomic="true" tabindex="0" data-ordinal="211" role="menuitem heading link" aria-label="Key tax topics for Super">Key tax topics for Super</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/A-Z-index/AZItems.aspx?sorttype=AZIndex&marketsegment=Individuals" id="dmm-link-212" aria-atomic="true" tabindex="0" data-ordinal="212" role="menuitem heading link" aria-level="3" aria-label="Tax topics A-Z">Tax topics A-Z</a>
</li>
</ul>
</div>
</div>
</div>
</li>
<li role="presentation">
<a class="level-1" href="/Tax-professionals/" id="dmm-link-213" aria-atomic="true" tabindex="0" data-ordinal="213" role="menuitem link" aria-haspopup="true" aria-level="1">Tax professionals<span class="sr-only"> Press down to open, up to collapse.</span></a>
<div class="sublinks container-fluid" aria-label="Submenu of Tax professionals. Press up to collapse." role="menu">
<div class="row">
<div class="col-sm-4">
<h2><a class="level-2" href="/Tax-professionals/Prepare-and-lodge/" id="dmm-link-214" aria-atomic="true" tabindex="0" data-ordinal="214" role="menuitem heading link" aria-label="Prepare and lodge">Prepare and lodge</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Tax-professionals/Prepare-and-lodge/Due-dates/" id="dmm-link-215" aria-atomic="true" tabindex="0" data-ordinal="215" role="menuitem heading link" aria-level="3" aria-label="Due dates">Due dates</a></li>
<li role="presentation">
<a href="/Tax-professionals/Prepare-and-lodge/Tax-Time-2022/" id="dmm-link-216" aria-atomic="true" tabindex="0" data-ordinal="216" role="menuitem heading link" aria-level="3" aria-label="Tax Time 2022">Tax Time 2022</a></li>
<li role="presentation">
<a href="/Tax-professionals/Prepare-and-lodge/Lodgment-program-framework/" id="dmm-link-217" aria-atomic="true" tabindex="0" data-ordinal="217" role="menuitem heading link" aria-level="3" aria-label="Lodgment program framework">Lodgment program framework</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Prepare-and-lodge/Tax-agent-lodgment-program/" id="dmm-link-218" aria-atomic="true" tabindex="0" data-ordinal="218" role="menuitem heading link" aria-level="3" aria-label="Tax agent lodgment program ">Tax agent lodgment program </a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Prepare-and-lodge/BAS-agent-lodgment-program/" id="dmm-link-219" aria-atomic="true" tabindex="0" data-ordinal="219" role="menuitem heading link" aria-level="3" aria-label="BAS agent lodgment program">BAS agent lodgment program</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Prepare-and-lodge/Managing-your-lodgment-program/" id="dmm-link-220" aria-atomic="true" tabindex="0" data-ordinal="220" role="menuitem heading link" aria-level="3" aria-label="Managing your lodgment program">Managing your lodgment program</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Prepare-and-lodge/Lodgment-program-deferrals/" id="dmm-link-221" aria-atomic="true" tabindex="0" data-ordinal="221" role="menuitem heading link" aria-level="3" aria-label="Lodgment program deferrals">Lodgment program deferrals</a>
</li>
</ul>
<h2><a class="level-2" href="/Tax-professionals/Digital-services/" id="dmm-link-222" aria-atomic="true" tabindex="0" data-ordinal="222" role="menuitem heading link" aria-label="Digital services">Digital services</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Tax-professionals/Digital-services/Online-services-for-agents/" id="dmm-link-223" aria-atomic="true" tabindex="0" data-ordinal="223" role="menuitem heading link" aria-level="3" aria-label="Online services for agents">Online services for agents</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Digital-services/Practitioner-lodgment-service/" id="dmm-link-224" aria-atomic="true" tabindex="0" data-ordinal="224" role="menuitem heading link" aria-level="3" aria-label="Practitioner lodgment service">Practitioner lodgment service</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Digital-services/Australian-Business-Register/" id="dmm-link-225" aria-atomic="true" tabindex="0" data-ordinal="225" role="menuitem heading link" aria-level="3" aria-label="Australian Business Register">Australian Business Register</a>
</li>
<li role="presentation">
<a href="/General/Online-services/Access-Manager/" id="dmm-link-226" aria-atomic="true" tabindex="0" data-ordinal="226" role="menuitem heading link" aria-level="3" aria-label="Access Manager">Access Manager</a></li>
<li role="presentation">
<a href="/General/Online-services/Tax-agents/myGovID-and-RAM-for-tax-professionals/" id="dmm-link-227" aria-atomic="true" tabindex="0" data-ordinal="227" role="menuitem heading link" aria-level="3" aria-label="myGovID and RAM">myGovID and RAM</a>
</li>
<li role="presentation">
<a href="/general/online-services/system-maintenance/" id="dmm-link-228" aria-atomic="true" tabindex="0" data-ordinal="228" role="menuitem heading link" aria-level="3" aria-label="System maintenance">System maintenance</a>
</li>
<li role="presentation">
<a href="/General/online-services/technical-support/troubleshooting-for-businesses-and-tax-practitioners/" id="dmm-link-229" aria-atomic="true" tabindex="0" data-ordinal="229" role="menuitem heading link" aria-level="3" aria-label="Troubleshooting">Troubleshooting</a>
</li>
<li role="presentation">
<a href="/General/Online-services/Online-security/" id="dmm-link-230" aria-atomic="true" tabindex="0" data-ordinal="230" role="menuitem heading link" aria-level="3" aria-label="Online security">Online security</a></li>
</ul>
<h2>
<a class="level-2" href="/Tax-professionals/Payment,-interest-and-penalties/" id="dmm-link-231" aria-atomic="true" tabindex="0" data-ordinal="231" role="menuitem heading link" aria-label="Payment, interest and penalties">Payment, interest and penalties</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation"><a href="/General/Paying-the-ATO/" id="dmm-link-232" aria-atomic="true" tabindex="0" data-ordinal="232" role="menuitem heading link" aria-level="3" aria-label="Paying the ATO">Paying the ATO</a></li>
<li role="presentation">
<a href="/General/Interest-and-penalties/" id="dmm-link-233" aria-atomic="true" tabindex="0" data-ordinal="233" role="menuitem heading link" aria-level="3" aria-label="Interest and penalties">Interest and penalties</a></li>
<li role="presentation"><a href="/General/Gen/Safe-harbour/" id="dmm-link-234" aria-atomic="true" tabindex="0" data-ordinal="234" role="menuitem heading link" aria-level="3" aria-label="Safe harbour">Safe harbour</a></li>
</ul>
</div>
<div class="col-sm-4">
<h2>
<a class="level-2" href="/Tax-professionals/Support-and-communication/" id="dmm-link-235" aria-atomic="true" tabindex="0" data-ordinal="235" role="menuitem heading link" aria-label="Support and communication">Support and communication</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Tax-professionals/Support-and-communication/Support-for-your-practice/" id="dmm-link-236" aria-atomic="true" tabindex="0" data-ordinal="236" role="menuitem heading link" aria-level="3" aria-label="Support for your practice">Support for your practice</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Support-and-communication/Phone-services/" id="dmm-link-237" aria-atomic="true" tabindex="0" data-ordinal="237" role="menuitem heading link" aria-level="3" aria-label="Phone services">Phone services</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Support-and-communication/News-services/" id="dmm-link-238" aria-atomic="true" tabindex="0" data-ordinal="238" role="menuitem heading link" aria-level="3" aria-label="News services">News services</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Support-and-communication/Systems-advice-and-alerts/" id="dmm-link-239" aria-atomic="true" tabindex="0" data-ordinal="239" role="menuitem heading link" aria-level="3" aria-label="Systems advice and alerts">Systems advice and alerts</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Support-and-communication/Consultation,-open-forums-and-speakers/" id="dmm-link-240" aria-atomic="true" tabindex="0" data-ordinal="240" role="menuitem heading link" aria-level="3" aria-label="Consultation, open forums and speakers">Consultation, open forums and speakers</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Support-and-communication/Tax-professionals-conversations-webcasts/" id="dmm-link-241" aria-atomic="true" tabindex="0" data-ordinal="241" role="menuitem heading link" aria-level="3" aria-label="Tax professionals webcasts">Tax professionals webcasts</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Support-and-communication/Digital-education-resources/" id="dmm-link-242" aria-atomic="true" tabindex="0" data-ordinal="242" role="menuitem heading link" aria-level="3" aria-label="Digital education resources">Digital education resources</a>
</li>
</ul>
<h2><a class="level-2" href="/Tax-professionals/Your-practice/" id="dmm-link-243" aria-atomic="true" tabindex="0" data-ordinal="243" role="menuitem heading link" aria-label="Your practice">Your practice</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Tax-professionals/Your-practice/Tax-and-BAS-agents/" id="dmm-link-244" aria-atomic="true" tabindex="0" data-ordinal="244" role="menuitem heading link" aria-level="3" aria-label="Tax and BAS agents">Tax and BAS agents</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Your-practice/Legal-practitioners/" id="dmm-link-245" aria-atomic="true" tabindex="0" data-ordinal="245" role="menuitem heading link" aria-level="3" aria-label="Legal practitioners">Legal practitioners</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Your-practice/Insolvency-practitioners/" id="dmm-link-246" aria-atomic="true" tabindex="0" data-ordinal="246" role="menuitem heading link" aria-level="3" aria-label="Insolvency practitioners">Insolvency practitioners</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Your-practice/Digital-service-providers/" id="dmm-link-247" aria-atomic="true" tabindex="0" data-ordinal="247" role="menuitem heading link" aria-level="3" aria-label="Digital service providers">Digital service providers</a>
</li>
</ul>
<h2>
<a class="level-2" href="/General/Dispute-or-object-to-an-ATO-decision/" id="dmm-link-248" aria-atomic="true" tabindex="0" data-ordinal="248" role="menuitem heading link" aria-label="Dispute or object to a decision">Dispute or object to a decision</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/General/Dispute-or-object-to-an-ATO-decision/Object-to-an-ATO-decision/" id="dmm-link-249" aria-atomic="true" tabindex="0" data-ordinal="249" role="menuitem heading link" aria-level="3" aria-label="Object to an ATO decision">Object to an ATO decision</a>
</li>
<li role="presentation">
<a href="/General/Dispute-or-object-to-an-ATO-decision/Request-remission-of-interest-or-penalties/" id="dmm-link-250" aria-atomic="true" tabindex="0" data-ordinal="250" role="menuitem heading link" aria-level="3" aria-label="Remission of interest or penalties">Remission of interest or penalties</a>
</li>
<li role="presentation">
<a href="/General/Dispute-or-object-to-an-ATO-decision/Seek-an-external-review-of-our-decisions/" id="dmm-link-251" aria-atomic="true" tabindex="0" data-ordinal="251" role="menuitem heading link" aria-level="3" aria-label="External review of our decisions">External review of our decisions</a>
</li>
<li role="presentation">
<a href="/General/Dispute-or-object-to-an-ATO-decision/Options-for-resolving-disputes/" id="dmm-link-252" aria-atomic="true" tabindex="0" data-ordinal="252" role="menuitem heading link" aria-level="3" aria-label="Options for resolving disputes">Options for resolving disputes</a>
</li>
</ul>
</div>
<div class="col-sm-4">
<h2><a class="level-2" href="/Key-links/?sorttype=SortByTopic" id="dmm-link-253" aria-atomic="true" tabindex="0" data-ordinal="253" role="menuitem heading link" aria-label="Key links">Key links</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/Tax-professionals/Newsroom/" id="dmm-link-254" aria-atomic="true" tabindex="0" data-ordinal="254" role="menuitem heading link" aria-level="3" aria-label="Tax professionals newsroom">Tax professionals newsroom</a>
</li>
<li role="presentation"><a href="https://community.ato.gov.au/" id="dmm-link-255" aria-atomic="true" tabindex="0" data-ordinal="255" role="menuitem heading link" aria-level="3" aria-label="ATO community">ATO community</a></li>
<li role="presentation">
<a href="/Tax-professionals/Prepare-and-lodge/In-detail/Tax-Time-Toolkits/" id="dmm-link-256" aria-atomic="true" tabindex="0" data-ordinal="256" role="menuitem heading link" aria-level="3" aria-label="Tax Time Toolkit">Tax Time Toolkit</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Support-and-communication/In-detail/Cash-flow-coaching-kit/" id="dmm-link-257" aria-atomic="true" tabindex="0" data-ordinal="257" role="menuitem heading link" aria-level="3" aria-label="Cash flow coaching kit">Cash flow coaching kit</a>
</li>
<li role="presentation"><a href="/Forms/" id="dmm-link-258" aria-atomic="true" tabindex="0" data-ordinal="258" role="menuitem heading link" aria-level="3" aria-label="Forms and instructions">Forms and instructions</a></li>
<li role="presentation">
<a href="/Rates/?sorttype=SortByTopic&marketsegment=Tax%20professionals" id="dmm-link-259" aria-atomic="true" tabindex="0" data-ordinal="259" role="menuitem heading link" aria-level="3" aria-label="Tax rates and codes">Tax rates and codes</a>
</li>
<li role="presentation"><a href="/Rates/Tax-tables/" id="dmm-link-260" aria-atomic="true" tabindex="0" data-ordinal="260" role="menuitem heading link" aria-level="3" aria-label="Tax tables">Tax tables</a></li>
<li role="presentation">
<a href="/Rates/Foreign-exchange-rates/" id="dmm-link-261" aria-atomic="true" tabindex="0" data-ordinal="261" role="menuitem heading link" aria-level="3" aria-label="Foreign exchange rates">Foreign exchange rates</a></li>
<li role="presentation">
<a href="/Calculators-and-tools/?sorttype=SortByTopic&marketsegment=Tax%20professionals" id="dmm-link-262" aria-atomic="true" tabindex="0" data-ordinal="262" role="menuitem heading link" aria-level="3" aria-label="Calculators and tools">Calculators and tools</a>
</li>
<li role="presentation">
<a href="/General/Fix-a-mistake-or-amend-a-return/" id="dmm-link-263" aria-atomic="true" tabindex="0" data-ordinal="263" role="menuitem heading link" aria-level="3" aria-label="Fix mistake or amend ">Fix mistake or amend </a>
</li>
<li role="presentation">
<a href="/General/Consultation/In-detail/Stewardship-groups-minutes/Tax-Practitioner-Stewardship-Group/" id="dmm-link-264" aria-atomic="true" tabindex="0" data-ordinal="264" role="menuitem heading link" aria-level="3" aria-label="Latest TPSG key messages">Latest TPSG key messages</a>
</li>
<li role="presentation">
<a href="/Tax-professionals/Your-practice/Tax-and-BAS-agents/Disaster-events/" id="dmm-link-265" aria-atomic="true" tabindex="0" data-ordinal="265" role="menuitem heading link" aria-level="3" aria-label="Disaster events">Disaster events</a>
</li>
</ul>
<h2>
<a class="level-2" href="/A-Z-index/AZItems.aspx?sorttype=AZIndex&marketsegment=Individuals" id="dmm-link-266" aria-atomic="true" tabindex="0" data-ordinal="266" role="menuitem heading link" aria-label="Key tax topics for Tax professionals">Key tax topics for Tax professionals</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation"><a href="/general/new-legislation/" id="dmm-link-267" aria-atomic="true" tabindex="0" data-ordinal="267" role="menuitem heading link" aria-level="3" aria-label="New legislation">New legislation</a></li>
<li role="presentation">
<a href="/general/ato-advice-and-guidance/" id="dmm-link-268" aria-atomic="true" tabindex="0" data-ordinal="268" role="menuitem heading link" aria-level="3" aria-label="ATO advice and guidance">ATO advice and guidance</a></li>
<li role="presentation">
<a href="/A-Z-index/AZItems.aspx?sorttype=AZIndex&marketsegment=Entire website" id="dmm-link-269" aria-atomic="true" tabindex="0" data-ordinal="269" role="menuitem heading link" aria-level="3" aria-label="Tax topics A-Z">Tax topics A-Z</a>
</li>
</ul>
</div>
</div>
</div>
</li>
<li role="presentation">
<a class="level-1" href="/About-ATO/" id="dmm-link-270" aria-atomic="true" tabindex="0" data-ordinal="270" role="menuitem link" aria-haspopup="true" aria-level="1">About ATO<span class="sr-only"> Press down to open, up to collapse.</span></a>
<div class="sublinks container-fluid" aria-label="Submenu of About ATO. Press up to collapse." role="menu">
<div class="row">
<div class="col-sm-4">
<h2><a class="level-2" href="/About-ATO/Who-we-are/" id="dmm-link-271" aria-atomic="true" tabindex="0" data-ordinal="271" role="menuitem heading link" aria-label="Who we are">Who we are</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/About-ATO/Who-we-are/Executive-and-governance/" id="dmm-link-272" aria-atomic="true" tabindex="0" data-ordinal="272" role="menuitem heading link" aria-level="3" aria-label="Executive and governance">Executive and governance</a>
</li>
<li role="presentation"><a href="/Media-centre/" id="dmm-link-273" aria-atomic="true" tabindex="0" data-ordinal="273" role="menuitem heading link" aria-level="3" aria-label="Media centre">Media centre</a></li>
<li role="presentation"><a href="/About-ATO/Who-we-are/Our-history/" id="dmm-link-274" aria-atomic="true" tabindex="0" data-ordinal="274" role="menuitem heading link" aria-level="3" aria-label="Our history">Our history</a></li>
</ul>
<h2>
<a class="level-2" href="/About-ATO/Managing-the-tax-and-super-system/" id="dmm-link-275" aria-atomic="true" tabindex="0" data-ordinal="275" role="menuitem heading link" aria-label="Managing the tax and super system">Managing the tax and super system</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/About-ATO/Managing-the-tax-and-super-system/Strategic-direction/" id="dmm-link-276" aria-atomic="true" tabindex="0" data-ordinal="276" role="menuitem heading link" aria-level="3" aria-label="Strategic direction">Strategic direction</a>
</li>
</ul>
<h2>
<a class="level-2" href="/about-ato/commitments-and-reporting/" id="dmm-link-277" aria-atomic="true" tabindex="0" data-ordinal="277" role="menuitem heading link" aria-label="Commitments and reporting">Commitments and reporting</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/About-ATO/Commitments-and-reporting/Annual-report-and-other-reporting-to-Parliament/" id="dmm-link-278" aria-atomic="true" tabindex="0" data-ordinal="278" role="menuitem heading link" aria-level="3" aria-label="Annual report and other reporting to Parliament">Annual report and other reporting to Parliament</a>
</li>
<li role="presentation">
<a href="/About-ATO/Commitments-and-reporting/Our-scrutineers/" id="dmm-link-279" aria-atomic="true" tabindex="0" data-ordinal="279" role="menuitem heading link" aria-level="3" aria-label="Our scrutineers">Our scrutineers</a>
</li>
<li role="presentation">
<a href="/About-ATO/Commitments-and-reporting/Taxpayers--charter/" id="dmm-link-280" aria-atomic="true" tabindex="0" data-ordinal="280" role="menuitem heading link" aria-level="3" aria-label="Taxpayers' charter">Taxpayers' charter</a>
</li>
<li role="presentation">
<a href="/About-ATO/Commitments-and-reporting/Service-commitments/" id="dmm-link-281" aria-atomic="true" tabindex="0" data-ordinal="281" role="menuitem heading link" aria-level="3" aria-label="Service commitments">Service commitments</a>
</li>
<li role="presentation"><a href="/General/Consultation/" id="dmm-link-282" aria-atomic="true" tabindex="0" data-ordinal="282" role="menuitem heading link" aria-level="3" aria-label="Consultation">Consultation</a></li>
<li role="presentation">
<a href="/About-ATO/Commitments-and-reporting/Information-and-privacy/" id="dmm-link-283" aria-atomic="true" tabindex="0" data-ordinal="283" role="menuitem heading link" aria-level="3" aria-label="Information and privacy">Information and privacy</a>
</li>
<li role="presentation">
<a href="/About-ATO/Commitments-and-reporting/Our-commitment-to-diversity/" id="dmm-link-284" aria-atomic="true" tabindex="0" data-ordinal="284" role="menuitem heading link" aria-level="3" aria-label="Our commitment to diversity">Our commitment to diversity</a>
</li>
</ul>
</div>
<div class="col-sm-4">
<h2><a class="level-2" href="/About-ATO/Research-and-statistics/" id="dmm-link-285" aria-atomic="true" tabindex="0" data-ordinal="285" role="menuitem heading link" aria-label="Research and statistics">Research and statistics</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/About-ATO/Research-and-statistics/Tax-and-superannuation-statistics/" id="dmm-link-286" aria-atomic="true" tabindex="0" data-ordinal="286" role="menuitem heading link" aria-level="3" aria-label="Tax and superannuation statistics">Tax and superannuation statistics</a>
</li>
<li role="presentation">
<a href="/About-ATO/Research-and-statistics/Our-research/" id="dmm-link-287" aria-atomic="true" tabindex="0" data-ordinal="287" role="menuitem heading link" aria-level="3" aria-label="Our research">Our research</a></li>
</ul>
<h2><a class="level-2" href="/About-ATO/Careers/" id="dmm-link-288" aria-atomic="true" tabindex="0" data-ordinal="288" role="menuitem heading link" aria-label="Careers">Careers</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/About-ATO/Careers/What-we-offer-you/" id="dmm-link-289" aria-atomic="true" tabindex="0" data-ordinal="289" role="menuitem heading link" aria-level="3" aria-label="What we offer you ">What we offer you </a></li>
<li role="presentation">
<a href="/About-ATO/Careers/What-we-look-for-and-how-to-apply/" id="dmm-link-290" aria-atomic="true" tabindex="0" data-ordinal="290" role="menuitem heading link" aria-level="3" aria-label="What we look for and how to apply ">What we look for and how to apply </a>
</li>
<li role="presentation">
<a href="/About-ATO/Careers/Entry-level-programs/" id="dmm-link-291" aria-atomic="true" tabindex="0" data-ordinal="291" role="menuitem heading link" aria-level="3" aria-label="Entry level programs">Entry level programs</a>
</li>
<li role="presentation">
<a href="/About-ATO/Careers/Current-vacancies/" id="dmm-link-292" aria-atomic="true" tabindex="0" data-ordinal="292" role="menuitem heading link" aria-level="3" aria-label="Current vacancies">Current vacancies</a></li>
</ul>
</div>
<div class="col-sm-4">
<h2>
<a class="level-2" href="/about-ato/ato-tenders-and-procurement/" id="dmm-link-293" aria-atomic="true" tabindex="0" data-ordinal="293" role="menuitem heading link" aria-label="ATO tenders and procurement">ATO tenders and procurement</a>
</h2>
<ul class="level-3-list" role="presentation">
<li role="presentation">
<a href="/About-ATO/ATO-tenders-and-procurement/The-tendering-process/" id="dmm-link-294" aria-atomic="true" tabindex="0" data-ordinal="294" role="menuitem heading link" aria-level="3" aria-label="The tendering process ">The tendering process </a>
</li>
<li role="presentation">
<a href="/About-ATO/ATO-tenders-and-procurement/Complying-with-procurement-policy-and-legislation/" id="dmm-link-295" aria-atomic="true" tabindex="0" data-ordinal="295" role="menuitem heading link" aria-level="3" aria-label="Complying with procurement policy and legislation">Complying with procurement policy and legislation</a>
</li>
<li role="presentation">
<a href="/About-ATO/ATO-tenders-and-procurement/Guidelines-for-contractors-and-suppliers/" id="dmm-link-296" aria-atomic="true" tabindex="0" data-ordinal="296" role="menuitem heading link" aria-level="3" aria-label="Guidelines for contractors and suppliers">Guidelines for contractors and suppliers</a>
</li>
<li role="presentation">
<a href="/About-ATO/ATO-tenders-and-procurement/Procurement-related-complaints/" id="dmm-link-297" aria-atomic="true" tabindex="0" data-ordinal="297" role="menuitem heading link" aria-level="3" aria-label="Procurement related complaints">Procurement related complaints</a>
</li>
</ul>
<h2><a class="level-2" href="/Key-links/?sorttype=SortByTopic" id="dmm-link-298" aria-atomic="true" tabindex="0" data-ordinal="298" role="menuitem heading link" aria-label="Key links">Key links</a></h2>
<ul class="level-3-list" role="presentation">
<li role="presentation"><a href="/Accessibility/" id="dmm-link-299" aria-atomic="true" tabindex="0" data-ordinal="299" role="menuitem heading link" aria-level="3" aria-label="Accessibility">Accessibility</a></li>
<li role="presentation">
<a href="/About-ATO/Commitments-and-reporting/Annual-report-and-other-reporting-to-Parliament/Annual-report/" id="dmm-link-300" aria-atomic="true" tabindex="0" data-ordinal="300" role="menuitem heading link" aria-level="3" aria-label="Annual Report">Annual Report</a>
</li>
<li role="presentation"><a href="/About-ATO/Contact-us/" id="dmm-link-301" aria-atomic="true" tabindex="0" data-ordinal="301" role="menuitem heading link" aria-level="3" aria-label="Contact us">Contact us</a></li>
<li role="presentation"><a href="/About-ATO/About/corporate-plan/" id="dmm-link-302" aria-atomic="true" tabindex="0" data-ordinal="302" role="menuitem heading link" aria-level="3" aria-label="Corporate plan">Corporate plan</a>
</li>
<li role="presentation"><a href="/General/Online-services/" id="dmm-link-303" aria-atomic="true" tabindex="0" data-ordinal="303" role="menuitem heading link" aria-level="3" aria-label="Online services">Online services</a></li>
<li role="presentation">
<a href="/general/online-services/identity-security-and-scams/scam-alerts/" id="dmm-link-304" aria-atomic="true" tabindex="0" data-ordinal="304" role="menuitem heading link" aria-level="3" aria-label="Scam alerts">Scam alerts</a>
</li>
</ul>
</div>
</div>
</div>
</li>
<li class="desktop-ignore visible-xs-block" role="presentation">
<a class="level-1 minor" href="/Whats-new.aspx?marketsegment=Entire%20Website" id="dmm-link-305" aria-atomic="true" tabindex="0" data-ordinal="305" role="menuitem link" aria-level="1">What's New</a></li>
<li class="desktop-ignore visible-xs-block" role="presentation">
<a class="level-1 minor" href="https://community.ato.gov.au" id="dmm-link-306" aria-atomic="true" tabindex="0" data-ordinal="306" role="menuitem link" aria-level="1">ATO Community</a></li>
<li class="desktop-ignore visible-xs-block" role="presentation"><a class="level-1 minor" href="/Law/" id="dmm-link-307" aria-atomic="true" tabindex="0" data-ordinal="307" role="menuitem link" aria-level="1">Legal database</a></li>
<li class="desktop-ignore visible-xs-block" role="presentation">
<a class="level-1 minor" href="/A-Z-index/AZItems.aspx?sorttype=AZIndex" id="dmm-link-308" aria-atomic="true" tabindex="0" data-ordinal="308" role="menuitem link" aria-level="1">Tax Topics A-Z</a></li>
</ul>
</nav>
</div>
</div>
</header>
<!-- HEADER ENDS -->
<!--googleoff: all-->
<!-- LITE Content Template -->
<div class="header-separator stripe">
</div>
<!-- MAIN STARTS -->
<main id="main-content">
<section class="content-page layout-content-box">
<div class="container-fluid">
<div class="row content-top">
<div class="col-xs-9 breadcrumb-wrapper">
<!-- ITEM V (Breadcrumbs) -->
<div class="widgetBody">
<div class="breadcrumbs">
<ul>
<li class="first"><a href="/"><span class="homeButton">Home </span></a><span class="chevron">></span></li>
<li><a href="/Individuals/">Individuals</a><span class="chevron">></span></li>
<li><a href="/Individuals/Capital-gains-tax/">Capital gains tax</a><span class="chevron">></span></li>
<li><a href="/Individuals/Capital-gains-tax/In-detail/">In detail</a><span class="chevron">></span></li>
<li><a href="/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/">Foreign resident capital gains withholding</a></li>
<li class="breadcrumb"> Capital gains withholding: Impacts on foreign and Australian residents </li>
</ul>
</div>
<div class="mobileBreadcrumbs secondary"><a href="/Individuals/Capital-gains-tax/">Back</a></div>
</div>
</div>
<div class="col-xs-3">
<div class="document-controls">
<div class="download-pdf-controls"><a class="download-pdf-icon" tabindex="0" data-toggle="popover" data-trigger="manual" data-placement="left" data-container=".download-pdf-controls" data-html="true" aria-haspopup="true" data-original-title="" title="">
<span class="sr-only">Show download pdf controls</span>
</a>
<script type="text/html">
<p>
<a class='download-pdf-option' title='Save as pdf' href='/misc/downloads/pdf/qc48972.pdf'>Save as pdf</a><br />
</p>
</script>
</div>
<div class="print-controls">
<a class="print-icon" tabindex="0" data-toggle="popover" data-trigger="manual" data-placement="left" data-container=".print-controls" data-html="true" aria-haspopup="true" data-original-title="" title="">
<span class="sr-only">Show print controls</span>
</a>
<script type="text/html">
<p>
<a class='print-option' onclick='window.print();' title='Print this Page' href='#'>Print this page</a><br />
</p>
<p>
<a class='print-option' target='_self' onclick="location.href='/printfriendly.aspx?url=' + window.location.pathname;" title='Print this document' href='#'>Print entire document</a>
</p>
</script>
</div>
</div>
</div>
</div>
</div>
<div class="container-fluid">
<div class="row">
<!-- Local menu -->
<aside class="col-sm-3 side-nav-container" aria-expanded="false">
<div class="dropdown-layout">
<button class="dropdown-toggler" type="button">
<span class="icon" aria-hidden="true"></span>
<span class="sr-only">Toggle List dropdown button</span>
</button>
</div>
<div class="widgetBody"><span class="accesspoint"></span>
<div class="secondaryTitle">
<h2>
<a href="/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains-withholding---Impacts-on-foreign-and-Australian-residents/">Capital gains withholding - Impacts on foreign and Australian residents</a>
</h2>
</div><!-- taxonomyId = 0 -->
<nav class="side-nav">
<h2><a class="headerlink" tabindex="-1" href="#"></a></h2>
<script id="template-expander" type="text/html">
<button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button>
</script>
<ul class="links-tree" role="application" aria-label="Content side navigation">
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Background" class="node" aria-atomic="true" tabindex="0">Background<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#When_the_rules_apply" class="node" aria-atomic="true" tabindex="0">When the rules apply</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Online_forms_and_instructions" class="node" aria-atomic="true" tabindex="0">Online forms and instructions</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Asset_types" class="node" aria-atomic="true" tabindex="0">Asset types<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Market_value" class="node" aria-atomic="true" tabindex="0">Market value</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Excluded_assets" class="node" aria-atomic="true" tabindex="0">Excluded assets</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Exceptions" class="node" aria-atomic="true" tabindex="0">Exceptions</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Vendor" class="node" aria-atomic="true" tabindex="0">Vendor<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#When_the_vendor_is_treated_as_a_foreign_resident" class="node" aria-atomic="true" tabindex="0">When the vendor is treated as a foreign resident<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Knowledge_condition" class="node" aria-atomic="true" tabindex="0">Knowledge condition</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Evidence_for_the_knowledge_condition" class="node" aria-atomic="true" tabindex="0">Evidence for the knowledge condition</a>
</li>
</ul>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Clearance_certificates" class="node" aria-atomic="true" tabindex="0">Clearance certificates<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#How_to_apply" class="node" aria-atomic="true" tabindex="0">How to apply</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#When_to_obtain_a_clearance_certificate" class="node" aria-atomic="true" tabindex="0">When to obtain a clearance certificate</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#How_long_it_takes" class="node" aria-atomic="true" tabindex="0">How long it takes</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Where_we_send_the_certificate" class="node" aria-atomic="true" tabindex="0">Where we send the certificate</a>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Valid_clearance_certificate" class="node" aria-atomic="true" tabindex="0">Valid clearance certificate<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#What_name_should_be_on_the_clearance_certificate" class="node" aria-atomic="true" tabindex="0">What name should be on the clearance certificate</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Trusts_and_superannuation_funds" class="node" aria-atomic="true" tabindex="0">Trusts and superannuation funds</a>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Consolidated_groups_and_multiple_entry_groups" class="node" aria-atomic="true" tabindex="0">Consolidated groups and multiple entry groups<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Withholding_and_intra_group_transactions" class="node" aria-atomic="true" tabindex="0">Withholding and intra-group transactions</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Entity_obtaining_the_clearance_certificate" class="node" aria-atomic="true" tabindex="0">Entity obtaining the clearance certificate</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#The_contract_is_for_longer_than_12_months" class="node" aria-atomic="true" tabindex="0">The contract is for longer than 12 months</a>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Do_the_rules_apply_if_the_market_value_of_the_asset_acquired_is_exactly__750_000_" class="node" aria-atomic="true" tabindex="0">Do the rules apply if the market value of the asset acquired is exactly $750,000?<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Estimated_market_value__750_000_or_above" class="node" aria-atomic="true" tabindex="0">Estimated market value $750,000 or above</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Selling_property_with_multiple_titles" class="node" aria-atomic="true" tabindex="0">Selling property with multiple titles</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#When_we_withdraw_a_clearance_certificate_once_it_has_been_issued" class="node" aria-atomic="true" tabindex="0">When we withdraw a clearance certificate once it has been issued</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#When_the_vendor_provides_a_fraudulent_clearance_certificate" class="node" aria-atomic="true" tabindex="0">When the vendor provides a fraudulent clearance certificate</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Deceased_estates" class="node" aria-atomic="true" tabindex="0">Deceased estates</a>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Situations_involving_mortgagors_and_mortgagees" class="node" aria-atomic="true" tabindex="0">Situations involving mortgagors and mortgagees<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Applying_for_the_clearance_certificate_or_vendor_variation" class="node" aria-atomic="true" tabindex="0">Applying for the clearance certificate or vendor variation</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#When_the_purchaser_should_withhold" class="node" aria-atomic="true" tabindex="0">When the purchaser should withhold</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Exceptions" class="node" aria-atomic="true" tabindex="0">Exceptions</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#The_company_is_insolvent_or_under_external_administration" class="node" aria-atomic="true" tabindex="0">The company is insolvent or under external administration</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#On_sale_of_property_with_no_immediate_transfer_of_title" class="node" aria-atomic="true" tabindex="0">On sale of property with no immediate transfer of title</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Relationship_breakdown" class="node" aria-atomic="true" tabindex="0">Relationship breakdown</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Income_tax_exempt_entities" class="node" aria-atomic="true" tabindex="0">Income tax exempt entities</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Government_authorities_and_not_for_profit_organisations" class="node" aria-atomic="true" tabindex="0">Government authorities and not-for-profit organisations</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Vendor_declarations" class="node" aria-atomic="true" tabindex="0">Vendor declarations<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Trusts_and_superannuation_funds" class="node" aria-atomic="true" tabindex="0">Trusts and superannuation funds</a>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Residency_declaration_for_transactions_that_are_not_real_property" class="node" aria-atomic="true" tabindex="0">Residency declaration for transactions that are not real property<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Purchaser_can_rely_on_the_declaration" class="node" aria-atomic="true" tabindex="0">Purchaser can rely on the declaration</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Not_an_indirect_Australian_real_property_interest_declaration" class="node" aria-atomic="true" tabindex="0">Not an indirect Australian real property interest declaration<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Purchaser_can_rely_on_the_declaration" class="node" aria-atomic="true" tabindex="0">Purchaser can rely on the declaration</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Interests_on_the_stock_market" class="node" aria-atomic="true" tabindex="0">Interests on the stock market</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#When_the_vendor_doesn_t_supply_a_declaration_when_requested" class="node" aria-atomic="true" tabindex="0">When the vendor doesn't supply a declaration when requested</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Valid_declaration_from_a_vendor" class="node" aria-atomic="true" tabindex="0">Valid declaration from a vendor</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#How_to_declare" class="node" aria-atomic="true" tabindex="0">How to declare</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Multiple_vendors" class="node" aria-atomic="true" tabindex="0">Multiple vendors</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Declarations_and_the_disposal_of_real_property" class="node" aria-atomic="true" tabindex="0">Declarations and the disposal of real property</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#False_vendor_declarations" class="node" aria-atomic="true" tabindex="0">False vendor declarations</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Penalties" class="node" aria-atomic="true" tabindex="0">Penalties</a>
</li>
</ul>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Variations" class="node" aria-atomic="true" tabindex="0">Variations<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Foreign_residents_claiming_the_main_residence_exemption_as_a_reason_for_the_variation" class="node" aria-atomic="true" tabindex="0">Foreign residents claiming the main residence exemption as a reason for the variation<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#When_the_change_applies" class="node" aria-atomic="true" tabindex="0">When the change applies</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Legislative_Instruments" class="node" aria-atomic="true" tabindex="0">Legislative Instruments</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#How_to_apply" class="node" aria-atomic="true" tabindex="0">How to apply</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Calculating_the_reduced_rate_of_withholding" class="node" aria-atomic="true" tabindex="0">Calculating the reduced rate of withholding</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Unit_price_fluctuations" class="node" aria-atomic="true" tabindex="0">Unit price fluctuations</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Multiple_vendors" class="node" aria-atomic="true" tabindex="0">Multiple vendors</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Valid_variation_notice" class="node" aria-atomic="true" tabindex="0">Valid variation notice</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Calculating_the_withholding" class="node" aria-atomic="true" tabindex="0">Calculating the withholding<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Purchase_price_vs_market_value" class="node" aria-atomic="true" tabindex="0">Purchase price vs market value</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Purchase_price_vs_first_element_of_the_cost_base" class="node" aria-atomic="true" tabindex="0">Purchase price vs first element of the cost base</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Multiple_properties_in_one_transaction" class="node" aria-atomic="true" tabindex="0">Multiple properties in one transaction</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#No_additional_payment_on_top_of_the_agreed_purchase_price" class="node" aria-atomic="true" tabindex="0">No additional payment on top of the agreed purchase price</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#How_withholding_applies_to_deposits_or_instalments" class="node" aria-atomic="true" tabindex="0">How withholding applies to deposits or instalments</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#When_the_contract_doesn_t_settle" class="node" aria-atomic="true" tabindex="0">When the contract doesn’t settle</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Multiple_purchasers__the_ATO_online_form_will_help_in_this_calculation_" class="node" aria-atomic="true" tabindex="0">Multiple purchasers (the ATO online form will help in this calculation)</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Multiple_vendors__the_ATO_online_form_will_help_in_this_calculation_" class="node" aria-atomic="true" tabindex="0">Multiple vendors (the ATO online form will help in this calculation)</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#When_the_purchaser_fails_to_withhold" class="node" aria-atomic="true" tabindex="0">When the purchaser fails to withhold</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Goods_and_services_tax" class="node" aria-atomic="true" tabindex="0">Goods and services tax<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#An_exception___the_margin_scheme" class="node" aria-atomic="true" tabindex="0">An exception – the margin scheme</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Leases" class="node" aria-atomic="true" tabindex="0">Leases<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Acquisition_of_a_lease" class="node" aria-atomic="true" tabindex="0">Acquisition of a lease</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Withhold_amount_if_paying_a_premium_for_the_lease" class="node" aria-atomic="true" tabindex="0">Withhold amount if paying a premium for the lease</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Rent_and_outgoings" class="node" aria-atomic="true" tabindex="0">Rent and outgoings</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Options" class="node" aria-atomic="true" tabindex="0">Options<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#When_an_option_contract_is_entered_before_1_July_2016_but_exercised_after_that_date" class="node" aria-atomic="true" tabindex="0">When an option contract is entered before 1 July 2016 but exercised after that date</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Earnouts" class="node" aria-atomic="true" tabindex="0">Earnouts<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Look_through_standard_earnout_rights" class="node" aria-atomic="true" tabindex="0">Look-through standard earnout rights</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Non_look_through_standard_earnout_right" class="node" aria-atomic="true" tabindex="0">Non-look-through standard earnout right</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Look_through_reverse_earnout_right" class="node" aria-atomic="true" tabindex="0">Look-through reverse earnout right</a>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Non_look_through_reverse_earnout_right" class="node" aria-atomic="true" tabindex="0">Non-look-through reverse earnout right<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Earnout_rights_do_not_affect_the_market_value_of_the_underlying_asset" class="node" aria-atomic="true" tabindex="0">Earnout rights do not affect the market value of the underlying asset</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#The_purchaser_cannot_use_the_upfront_payment_as_a_proxy_for_market_value" class="node" aria-atomic="true" tabindex="0">The purchaser cannot use the upfront payment as a proxy for market value</a>
</li>
</ul>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Share_issues___IPOs" class="node" aria-atomic="true" tabindex="0">Share issues / IPOs<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#An_option_to_acquire_shares" class="node" aria-atomic="true" tabindex="0">An option to acquire shares</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Paying_the_withholding" class="node" aria-atomic="true" tabindex="0">Paying the withholding<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#When_the_payment_is_required" class="node" aria-atomic="true" tabindex="0">When the payment is required<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#Purchaser_payment_notification_form" class="node" aria-atomic="true" tabindex="0">Purchaser payment notification form</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#How_to_pay" class="node" aria-atomic="true" tabindex="0">How to pay</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#After_payment_has_been_made" class="node" aria-atomic="true" tabindex="0">After payment has been made</a>
</li>
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#How_to_pay_when_travelling" class="node" aria-atomic="true" tabindex="0">How to pay when travelling</a>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="3">
<a href="?page=1#Compulsory_acquisitions_by_government_authorities" class="node" aria-atomic="true" tabindex="0">Compulsory acquisitions by government authorities<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="4">
<a href="?page=1#Payment_of_withholding_tax" class="node" aria-atomic="true" tabindex="0">Payment of withholding tax</a>
</li>
<li class="node-container" role="treeitem" aria-level="4">
<a href="?page=1#Deferral_of_payment" class="node" aria-atomic="true" tabindex="0">Deferral of payment</a>
</li>
<li class="node-container" role="treeitem" aria-level="4">
<a href="?page=1#Notice" class="node" aria-atomic="true" tabindex="0">Notice</a>
</li>
</ul>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Penalties" class="node" aria-atomic="true" tabindex="0">Penalties</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#Foreign_resident_capital_gains_withholding_and_the_tax_return" class="node" aria-atomic="true" tabindex="0">Foreign resident capital gains withholding and the tax return<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="2">
<a href="?page=1#Applying_the_credit" class="node" aria-atomic="true" tabindex="0">Applying the credit<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="3">
<a href="?page=1#When_the_purchaser_withholds_but_doesn_t_pay_it_to_us" class="node" aria-atomic="true" tabindex="0">When the purchaser withholds but doesn't pay it to us</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Amendments" class="node" aria-atomic="true" tabindex="0">Amendments</a>
</li>
</ul>
</li>
<li class="node-container" role="treeitem" aria-expanded="false" aria-level="1">
<a href="?page=1#More_information" class="node" aria-atomic="true" tabindex="0">More information<span class="sr-only"> Press right to expand, left to close.</span><span class="sr-only location-indicator"></span><button class="expander" aria-hidden="true" type="button" tabindex="-1">
<div class="internal-layout">
<div class="icon-aligner">
<span class="expander-icon"></span>
</div>
</div>
</button></a>
<ul role="group">
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Law_companion_rulings" class="node" aria-atomic="true" tabindex="0">Law companion rulings</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Legislation_and_supporting_materials" class="node" aria-atomic="true" tabindex="0">Legislation and supporting materials</a>
</li>
<li class="node-container" role="treeitem" aria-level="2">
<a href="?page=1#Legislative_instruments" class="node" aria-atomic="true" tabindex="0">Legislative instruments</a>
</li>
</ul>
</li>
</ul>
</nav>
</div>
</aside>
<!-- ITEM S -->
<article class="col-sm-9">
<!--googleon: all-->
<div id="content-main-wrap" class="content-main-wrap ato-content">
<ul style="margin: 0; padding: 0">
<li class="PBItem" style="list-style-type: none">
<div class="widgetBody"><span class="accesspoint"></span>
<h1>Capital gains withholding: Impacts on foreign and Australian residents</h1>
<p>Foreign resident capital gains withholding (FRCGW) applies to vendors disposing of certain taxable property under contracts entered into from 1 July 2016.</p>
<p>The FRCGW tax rate is 12.5%.</p>
<p>It applies to real property disposals where the contract price is $750,000 or more.</p>
<p>For contracts that are entered into from 1 July 2016 and before 1 July 2017, even if they are not due to settle until after 1 July 2017, the FRCGW withholding tax rate is 10% and applies to real property
disposals where the contract price is $2 million and above.</p>
<p><b>In this section</b></p>
<ul>
<li><a href="#Background" class="bookmark">Background</a></li>
<li><a href="#Assettypes" class="bookmark">Asset types</a></li>
<li><a href="#Vendor" class="bookmark">Vendor</a></li>
<li><a href="#Clearancecertificates" class="bookmark">Clearance certificates</a></li>
<li><a href="#Vendordeclarations" class="bookmark">Vendor declarations</a></li>
<li><a href="#Variations" class="bookmark">Variations</a></li>
<li><a href="#Calculatingthewithholding1" class="bookmark">Calculating the withholding</a></li>
<li><a href="#Goodsandservicestax" class="bookmark">Goods and services tax</a></li>
<li><a href="#Leases" class="bookmark">Leases</a></li>
<li><a href="#Options" class="bookmark">Options</a></li>
<li><a href="#Earnouts" class="bookmark">Earnouts</a></li>
<li><a href="#ShareissuesIPOs" class="bookmark">Share issues / IPOs</a></li>
<li><a href="#Payingthewithholding" class="bookmark">Paying the withholding</a></li>
<li><a href="#Foreignresidentcapitalgainswithholdingan" class="bookmark">Foreign resident capital gains withholding and the tax return</a></li>
</ul>
<a name="Background"></a>
<h2><a id="Background" class="anchor"></a>Background</h2>
<p>This existing withholding legislation assists the collection of foreign residents’ Australian tax liabilities.</p>
<p>It imposes an obligation on purchasers to withhold 12.5% of the purchase price and pay it to us, where a vendor enters into a contract on or after 1 July 2017 and disposes of certain
<a href="#Assettypes" class="bookmark">asset types</a> (or receives a lease premium for the <a href="#Leases" class="bookmark">grant of a lease</a> over Australian real property).</p>
<p>The foreign resident vendor must lodge a tax return at the end of the financial year, declaring their Australian assessable income, including any capital gain (profit) from the disposal of the asset.</p>
<p>A <a href="#Foreignresidentcapitalgainswithholdingan" class="bookmark">tax file number</a> (TFN) is required to lodge a tax return; they will need to apply for a TFN if they don't have one. The vendor may claim a credit for any
withholding amount paid to us in their tax return.</p>
<p><b>Australian resident vendors</b> can avoid the requirement of the purchaser to withhold the 12.5% by providing one of the following to the purchaser prior to settlement: </p>
<ul>
<li>for Australian real property, a <a href="#Clearancecertificates" class="bookmark">clearance certificate</a> obtained from us <ul>
<li>Australian resident vendors selling real property will need to obtain a clearance certificate from us prior to settlement, to ensure they don't incur the 12.5% non-final withholding </li>
</ul> </li>
<li>for other asset types, a <a href="#Vendordeclarations" class="bookmark">vendor declaration</a>
<ul>
<li>the vendor may provide the purchaser with a vendor’s declaration to specify withholding isn't required on the acquisition of the asset. </li>
</ul>
</li>
</ul>
<p><b>Foreign resident vendors</b> may apply for a <a href="#Variations" class="bookmark">variation</a> of the withholding rate or make a declaration that a membership interest is not an indirect Australian real property interest
and therefore not subject to withholding.</p>
<p><b>Purchasers</b> must pay the amount withheld at settlement to the Commissioner of Taxation.</p>
<a name="When_the_rules_apply"></a>
<h3>When the rules apply</h3>
<ul>
<li>An entity (the purchaser) becomes the owner of a <a href="/Individuals/Capital-gains-tax/List-of-CGT-assets-and-exemptions/">capital gains tax (CGT) asset</a> as a result of acquiring it from a vendor (or vendors) under one
or more transactions.</li>
<li>At least one of those vendors is a <a href="#Vendor" class="bookmark">relevant foreign resident</a> at the time at least one of the transactions is entered into.</li>
<li>The CGT asset is a certain type of Australian property or an <a href="#Options" class="bookmark">option or right</a> to acquire such property.</li>
<li>The purchaser acquires the CGT asset under a contract entered into on or after 1 July 2016.</li>
<li>There are no <a href="#Exceptions" class="bookmark">exceptions</a></li>
</ul>
<p>While the objective of the rules is to assist in the collection of foreign residents' CGT liabilities, the withholding tax will apply regardless of whether the vendor's gain on the sale of the asset is subject to tax under the
CGT regime or as ordinary income.</p>
<p>The withholding obligation applies to both Australian resident and foreign resident purchasers.</p>
<p><b>In this section</b></p>
<ul>
<li><a href="#Onlineformsandinstructions" class="bookmark">Online forms and instructions</a></li>
<li><a href="#Assettypes" class="bookmark">Asset types</a></li>
<li><a href="#Vendor" class="bookmark">Vendor</a></li>
<li><a href="#Clearancecertificates" class="bookmark">Clearance certificates</a></li>
<li><a href="#Vendordeclarations" class="bookmark">Vendor declarations</a></li>
<li><a href="#Variations" class="bookmark">Variations</a></li>
<li><a href="#Calculatingthewithholding1" class="bookmark">Calculating the withholding</a></li>
<li><a href="#Payingthewithholding" class="bookmark">Paying the withholding</a></li>
<li><a href="#Foreignresidentcapitalgainswithholdingan" class="bookmark">Foreign resident capital gains withholding and the income tax return</a></li>
<li><a href="#Legislationandsupportingmaterials" class="bookmark">Legislation and other supporting materials</a></li>
</ul>
<a name="Online_forms_and_instructions"></a>
<h3><a id="Onlineformsandinstructions" class="anchor"></a>Online forms and instructions</h3>
<ul>
<li><a href="/frcgw_clearance_certificate.aspx" class="newWindow" target="_blank">Clearance certificate application for Australian residents<span>This link opens in a new window</span></a></li>
<li>
<a href="/Forms/Capital-gains-withholding-clearance-certificate-online-application-for-Australian-residents/">Capital gains withholding clearance certificate application online form and instructions – for Australian residents</a>
</li>
<li><a href="/frcgw_variation.aspx" class="newWindow" target="_blank">Variation application for foreign residents and other parties<span>This link opens in a new window</span></a></li>
<li><a href="/Forms/Foreign-resident-capital-gains-withholding-rate-variation-application-online-form-and-instructions/">Foreign resident capital gains withholding rate variation application online form and instructions</a></li>
<li><a href="/frcgw_payment_notification.aspx" class="newWindow" target="_blank">Purchaser payment notification<span>This link opens in a new window</span></a></li>
<li><a href="/Forms/Foreign-resident-capital-gains-withholding-purchaser-payment-online-notification/">Foreign resident capital gains withholding purchaser payment notification online form and instructions</a></li>
</ul>
<a name="Asset_types"></a>
<h2><a id="Assettypes" class="anchor"></a>Asset types</h2>
<p>The legislation applies to the following asset types:</p>
<ul>
<li>real property – taxable Australian real property with a <a href="#Marketvalue" class="bookmark">market value</a> of $750,000 or more<ul>
<li>vacant land, buildings, residential and commercial property</li>
<li>mining, quarrying or prospecting rights where the material is situated in Australia</li>
<li>a lease over real property in Australia if a lease premium has been paid for the grant of the lease </li>
</ul> </li>
<li>other assets<ul>
<li><a href="/tax-professionals/tp/cgt-withholding-and-indirect-australian-real-property-interests/?page=1#Indirect_Australian_real_property_interests">indirect Australian real property interests</a> in Australian entities
(that is, a membership interest of 10% or more in an entity whose underlying value is principally derived from Australian real property) – this includes shares in a company that owns land or a building erected on that
land, where the ownership of the shares gives a right to occupy that land or building (that is, a company title interest in real property)</li>
<li>options or rights to acquire any of the above asset types. </li>
</ul> </li>
</ul>
<a name="Market_value"></a>
<h3><a id="Marketvalue" class="anchor"></a>Market value</h3>
<p>In many cases, the market value of a property will be the purchase price. Where the purchase price has been negotiated between the vendor and the purchaser, acting at arm’s length, we will accept the purchase price as a proxy
for market value.</p>
<p>However, there could be circumstances where the market value is different to the stated purchase price (for example, where the vendor and purchaser are related parties and did not deal with each other at arm’s length). In such
cases, we will not accept the purchase price as a proxy for market value and the purchaser will need to seek a separate expert evaluation.</p>
<p><b>Note:</b> If the purchase price is used as a proxy for market value, the market value is the purchase price before adjustment for any disbursements at settlement (for example, council rates, water and sewer charges and
strata levies). Therefore, the $750,000 threshold test is applied to the purchase price before adjustment for disbursements.</p>
<a name="Excluded_assets"></a>
<h3><a id="Excludedassets" class="anchor"></a>Excluded assets</h3>
<p>Some assets are not subject to the withholding, including:</p>
<ul>
<li>taxable Australian real property with a market value of less than $750,000</li>
<li>an indirect Australian real property interest providing a company title interest with a market value of less than $750,000</li>
<li>transactions conducted through an approved stock exchange</li>
<li>transactions conducted using a broker-operated crossing system, such as a ‘dark pool’, as described in the ASIC Market Integrity Rules (ASX Market) 2010</li>
<li>transactions subject to another withholding obligation</li>
<li>securities lending arrangements, as these don't trigger a CGT liability for the vendor and therefore no payment obligation is imposed</li>
<li>transactions where the vendor is in external administration or transactions arising from the administration of a bankrupt estate, a composition or scheme of arrangement, a debt agreement, a personal insolvency agreement, or
same or similar circumstances under a foreign law.</li>
</ul>
<a name="Exceptions"></a>
<h3><a id="Exceptions" class="anchor"></a>Exceptions</h3>
<p>Foreign resident capital gains withholding doesn't apply when the vendor disposes of either:</p>
<ul>
<li>an Australian real property and provides the purchaser with a <a href="#Clearancecertificates" class="bookmark">clearance certificate</a> from us</li>
<li>any other asset where the purchaser is given a <a href="#Vendordeclarations" class="bookmark">vendor declaration</a></li>
</ul>
<a name="Vendor"></a>
<h2><a id="Vendor" class="anchor"></a>Vendor</h2>
<p>The vendor is the entity that holds the legal title to the asset this withholding applies to.</p>
<p>Where the asset is held on behalf of another entity, the vendor is the legal owner of the asset, for example, the trustee or custodian who holds the legal title on behalf of beneficiaries.</p>
<a name="When_the_vendor_is_treated_as_a_foreign_resident"></a>
<h3><a id="Whenthevendoristreatedasaforeignresident" class="anchor"></a>When the vendor is treated as a foreign resident</h3>
<p>A vendor is treated as a foreign resident if:</p>
<ul>
<li>the vendor doesn't provide the purchaser with either a valid<ul>
<li><a href="#Clearancecertificates" class="bookmark">clearance certificate</a> by settlement, if they are disposing of an asset that requires a clearance certificate to be provided to avoid the withholding being imposed
</li>
<li><a href="#Vendordeclarations" class="bookmark">vendor declaration</a> stating they are an Australian resident, or that the membership interest is not an indirect Australian real property interest, when asked to do so by
the purchaser with respect to a transaction involving an asset for which a vendor declaration can be used to avoid the withholding being imposed </li>
</ul> </li>
<li>the purchaser applies the 'knowledge condition'.</li>
</ul>
<a name="Knowledge_condition"></a>
<h4>Knowledge condition</h4>
<p>The knowledge condition is only relevant to purchases of indirect Australian real property interests (other than company title interests) and options and rights to acquire taxable Australian real property or indirect Australian
real property interests.</p>
<p>The knowledge condition will be satisfied where the purchaser either:</p>
<ul>
<li>knows or has reasonable grounds to believe the vendor is a foreign resident</li>
<li>does not reasonably believe the vendor is an Australian resident and either<ul>
<li>has a record about the acquisition indicating the vendor has an address outside Australia</li>
<li>is authorised to provide a financial benefit (for example, make a payment) to a place outside Australia (whether to the vendor or to anybody else). </li>
</ul> </li>
</ul>
<a name="Evidence_for_the_knowledge_condition"></a>
<h4>Evidence for the knowledge condition</h4>
<p>A purchaser in applying the knowledge condition must rely upon that information that it is aware of or has access to in making the decision. In some circumstances this will only be the share registry of the target entity whose
interests are being acquired by the purchaser.</p>
<p>It would be expected that the purchaser would rely upon the share registry no earlier than as at the date of the offer acceptance. Reliance from this date reduces the possibility that changes in the vendors circumstances would
occur up to the date of the transaction so as to change the purchaser’s belief about the vendor had they known of it before taking ownership of the interest in the target.</p>
<p>Purchasers who are not comfortable determining whether the knowledge condition is satisfied, may seek a vendor declaration confirming the vendor is not a relevant foreign resident.</p>
<p>Failure by the vendor to provide the declaration in these circumstances can be taken by the purchaser as confirmation that the vendor is a relevant foreign resident.</p>
<a name="Clearance_certificates"></a>
<h2><a id="Clearancecertificates" class="anchor"></a>Clearance certificates</h2>
<p>A clearance certificate provides certainty to purchasers regarding their withholding obligations. It confirms the withholding tax is not applicable to the transaction.</p>
<p>The purchaser must withhold 12.5% of the purchase price in transactions involving taxable Australian real property, or an indirect Australian real property interest that provides company title interests, with a market value of
$750,000 or more, unless the vendor shows the purchaser a clearance certificate from us.</p>
<p>We process applications in order of date of receipt. To avoid possible delays in your settlement, apply online for a clearance certificate at <a href="#Howlongwillittake" class="bookmark">least 28 days</a> before you
require it.</p>
<p>It is the vendor’s responsibility to obtain the clearance certificate and provide it to the purchaser at or before settlement. To avoid unanticipated delays, and to ensure the certificate is valid at the time it is given to the
purchaser, vendors seeking a clearance certificate should apply through the online form as early as practical in the sale process.</p>
<p>Without being presented with a valid clearance certificate, the purchaser will be required to remit 12.5% of the purchase price to us if no other <a href="#Excludedassets" class="bookmark">exclusions</a> apply.</p>
<a name="How_to_apply"></a><a name="How_to_apply"></a>
<h3>How to apply</h3>
<p>The Australian resident entity (or their representative) will need to complete an online
<a href="/frcgw_clearance_certificate.aspx" class="newWindow" target="_blank">Clearance certificate application for Australian residents<span>This link opens in a new window</span></a></p>
<p>Where there are multiple Australian resident vendors disposing of the asset, each vendor should apply for a separate clearance certificate in their name only.</p>
<p> </p>
<p>Australian residents not required to lodge tax returns, such as aged pensioners, are still required to obtain a clearance certificate.</p>
<p>If you are a foreign resident there is no point in you lodging an application. However, if you may be entitled to a <a href="#Variations" class="bookmark">variation</a> to the withholding rate, then you can lodge a variation
request.</p>
<p>If you can't access the webpage phone us on:</p>
<ul>
<li><b>13 28 66</b> (Fast Key Code <b>4</b> <b>2</b>) within Australia</li>
<li><b>+61 2 6216 1111</b> outside Australia to obtain details of what you need to provide.</li>
</ul>
<p>Where a valid clearance certificate is provided, the purchaser is not required to withhold an amount from the purchase price for the vendor listed in the clearance certificate.</p>
<p>If an Australian tax resident vendor has had withholding taken from their sale proceeds, for example because they didn't provide the purchaser with a clearance certificate, they will be able to claim a credit for that amount
when they lodge their tax return. This credit may be refunded if they don't have to pay capital gains tax on the sale of the property (for example, because it was their main residence).</p>
<p>Only an <a href="#Austresidententity" class="bookmark">Australian resident entity</a>* can obtain a clearance certificate. Solicitors, tax agents or other representatives of the vendor can apply on the vendor’s behalf.</p>
<p>Conveyancers, real estate agents and others charging a fee for services (but who are not legal practitioners or registered tax agents) should obtain a completed paper PDF version of the clearance certificate form from the
vendor. They can then use the details on the paper form to complete the online form, ensuring faster processing, as part of the settlement process.</p>
<p><b>Next step</b></p>
<ul>
<li>Use the form
<a href="/Forms/Capital-gains-withholding-clearance-certificate-paper-application-Australian-residents/">Capital gains withholding clearance certificate application paper form instructions – for Australian residents</a></li>
</ul>
<p>If you need help to work out your residency, see <a href="/Individuals/coming-to-australia-or-going-overseas/Your-tax-residency/">Work out your residency status for tax purposes</a>.</p>
<p><a id="Austresidententity" class="anchor"></a>*An Australian resident entity is one that is an Australian resident for tax purposes. This isn't the same as the definition of residency for immigration purposes, or for the
Foreign Investment Review Board (FIRB) applications to buy Australian property.</p>
<p>A clearance certificate only applies to the entity specified on the certificate. If an asset has multiple vendors, each vendor will need to show the purchaser a clearance certificate to ensure amounts are not withheld.</p>
<p>It's valid for 12 months from the date issued, so the vendor may be able to use it for multiple disposals of real property that occur within the 12 month period. The vendor doesn't have to reapply to us each time they
dispose of a property.</p>
<p>It may be provided to the purchaser at any time during the transaction, but must be provided to the purchaser by settlement.</p>
<a name="When_to_obtain_a_clearance_certificate"></a>
<h3>When to obtain a clearance certificate</h3>
<p>An entity may apply for a clearance certificate at any time they are considering the disposal of taxable Australian real property. This can be before the property is listed for sale.</p>
<p>You should apply for a clearance certificate online <b>at least 28 days</b> before you require it.</p>
<a name="How_long_it_takes"></a>
<h3><a id="Howlongwillittake" class="anchor"></a>How long it takes</h3>
<p>We issue clearance certificates within 28 days of receiving the application.</p>
<p>Higher risk and unusual cases may also require greater manual intervention, which could take longer.</p>
<p>If you lodge your application close to the settlement date, we cannot guarantee we can process it by the settlement date as we will not disadvantage those other applicants who applied earlier by delaying their application to
process yours.</p>
<a name="Where_we_send_the_certificate"></a>
<h3>Where we send the certificate</h3>
<p>Clearance certificates will be sent by email if an email address is provided in the application. Care should be taken to ensure that the email address supplied is current and correct to ensure a quick response. Otherwise
clearance certificates will be mailed to the vendor and the vendor’s contact using the addresses provided in the application.</p>
<p>To avoid unanticipated delays, vendors seeking a clearance certificate should apply through the online system as early as practical in the sale process.</p>
<a name="Valid_clearance_certificate"></a>
<h3>Valid clearance certificate</h3>
<p>A clearance certificate is valid for 12 months from the date of issue. It's only valid for the listed vendor and clearance certificate period on the certificate.</p>
<p>As long as the clearance certificate is provided by the vendor to the purchaser during the time specified on it, and that this is before settlement occurs, then it does not matter how long into the future the settlement may be.
The purchaser does not have to withhold.</p>
<p>All parties on the Certificate of Title will require a clearance certificate. For example, joint tenants / tenants in common will need to fill out a form each. It is the vendor’s responsibility to provide the purchaser with the
clearance certificate and ensure it's valid.</p>
<a name="What_name_should_be_on_the_clearance_certificate"></a>
<h4>What name should be on the clearance certificate</h4>
<p>Vendors must ensure the details on their clearance certificate application are accurate, so the clearance certificate issues in the correct name as that shown on the Certificate of Title of the property.</p>
<p>For the purchaser to rely on the clearance certificate, we require the following three conditions be met:</p>
<ul>
<li>The name of the vendor on the certificate must match the name on the certificate of title – see <a href="#Trustsandsuperannuationfunds" class="bookmark">Trusts and superannuation funds</a> for further clarification</li>
<li>the date the certificate is given to the purchaser must be a date that falls within the time period shown on the clearance certificate</li>
<li>the clearance certificate must be provided to the purchaser before settlement.</li>
</ul>
<p>We will issue a clearance certificate in the name that is in our system. This may mean the name of the vendor on the clearance certificate doesn't match the name of the vendor on the certificate of title. In these cases:</p>
<ul>
<li>we accept the purchaser has fulfilled their obligation if the vendor supplies the purchaser clearance certificate and proof of a name change (for example, a marriage certificate issued from an Australian state or territory
registry)</li>
<li>we accept that purchasers have fulfilled their obligation if they have sighted a certificate where the First Name and Last Name are consistent with the name on the title</li>
<li>an honorific match is not required</li>
<li>a correct address on a certificate is not required to fulfil the purchaser's obligations</li>
<li>it is not necessary to have the instrument number to a title deed on the clearance certificate – for example 'Trustee under instrument ###'</li>
<li>it is not necessary to have the details of the trust on the clearance certificate – for example 'as Trustee for the XYZ Trust'. See
<a href="/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains-withholding---Impacts-on-foreign-and-Australian-residents/?page=5#Trustsandsuperannuationfunds">Trusts and superannuation funds</a>
for further clarification</li>
<li>it is not necessary to have 'as executor for' or 'as legal representative for' on a clearance certificate to fulfil the purchasers obligations (where purchasing from a deceased estate). See
<a href="/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains-withholding---Impacts-on-foreign-and-Australian-residents/?page=5#Deceased_estates">Deceased estates</a> for further
clarification.</li>
</ul>
<p><b>Note:</b> We will <b>not</b> reissue certificates in the above instances.</p>
<p>When a purchaser receives a clearance certificate from a vendor that is valid, they can rely on it and not withhold. There is no need for the purchaser to question the residency of the vendor.</p>
<p>If the clearance certificate doesn't meet the above conditions, the purchaser is required to withhold 12.5% of the purchase price.</p>
<p>Although it's not necessary for the purchaser to check the validity of clearance certificates with us before deciding to withhold the 12.5% amount from the purchase price, they could decide to do so.</p>
<p>You can phone us on <b>13 28 66</b> (Fast Key Code <b>4 2</b>) to check if the clearance certificate is valid. You'll need to provide the following information:</p>
<ul>
<li>the number from the Our reference field at the top of the certificate</li>
<li>the vendor’s name as it appears on the clearance certificate.</li>
</ul>
<p>The call centre operative will then inform you whether the clearance certificate is valid.</p>
<a name="Trusts_and_superannuation_funds"></a>
<h3><a id="Trustsandsuperannuationfunds" class="anchor"></a>Trusts and superannuation funds</h3>
<p>The <a href="/Forms/Capital-gains-withholding-clearance-certificate-online-application-for-Australian-residents/">instructions for the capital gains withholding clearance certificate application</a> provide specific details
about how the form should be completed.</p>
<p>For trusts and superannuation funds, it is the entity that has legal title to the asset that applies for the clearance certificate. In most cases this is the trustee. It is the trustee –
<b>in their own capacity as either a company or an individual</b> – that should apply for the clearance certificate.</p>
<p>The trustee needs to use their own tax file number (TFN) and/or Australian business number (ABN) as the identifier (if they have one). It is recommended to include the Australian Company Number (ACN) as an attachment if they
have one.</p>
<p><b>Note:</b> If a corporate trustee does not have a TFN, include an attachment in the application which provides the details of the relevant trust.</p>
<p>The certificate will be issued in the name as it appears on our system. We accept the purchaser has fulfilled their obligation if the vendor can show that the entity on the clearance certificate is the trustee of the trust (for
example, copy of the trust deed).</p>
<p>This may be needed where our system contains 'The trustee for ABC Trust' whereas the title contains 'XYZ as the trustee for ABC Trust', or it has the trustee name only on the clearance certificate.</p>
<a name="Consolidated_groups_and_multiple_entry_groups"></a>
<h3>Consolidated groups and multiple entry groups</h3>
<a name="Withholding_and_intra_group_transactions"></a>
<h4>Withholding and intra-group transactions</h4>
<p>A member of a consolidated group or multiple entry groups that purchases from another member of the group an asset to which the withholding applies is still required to comply with the withholding obligation.</p>
<a name="Entity_obtaining_the_clearance_certificate"></a>
<h4>Entity obtaining the clearance certificate</h4>
<p>We'll issue a clearance certificate to the head company or provisional head company of the group which includes the members of the group as an attachment.</p>
<p>We rely upon the group membership information as recorded on our systems. If group membership has changed, it's up to the head company to notify us of these changes before making a clearance certificate request.</p>
<p>Alternatively, subsidiary entities can, in their own right, apply for a clearance certificate and have one issued in their own name.</p>
<a name="The_contract_is_for_longer_than_12_months"></a>
<h3>The contract is for longer than 12 months</h3>
<p>There may be instances where the settlement date is after the expiry date on the vendor’s clearance certificate. For example, where an off-the-plan apartment is acquired and the contract period is greater than 12 months.
</p>
<p>The purchaser may rely on the clearance certificate being valid as long as the date it's made available to the purchaser, is within the clearance certificate period stated on the certificate.</p>
<a name="Do_the_rules_apply_if_the_market_value_of_the_asset_acquired_is_exactly__750_000_"></a>
<h3>Do the rules apply if the market value of the asset acquired is exactly $750,000?</h3>
<p>Yes, the transaction will only be excluded from the rules if the market value of the taxable Australian real property or company title interest acquired is less than $750,000.</p>
<a name="Estimated_market_value__750_000_or_above"></a>
<h4>Estimated market value $750,000 or above</h4>
<p>If the vendor is uncertain whether the $750,000 threshold will be reached (for example, because the property is going to auction or a sales contract is yet to be signed) the vendor may wish to be conservative and apply for a
clearance certificate. If the property is then sold for less than $750,000, the vendor doesn't need to provide the purchaser with the clearance certificate.</p>
<a name="Selling_property_with_multiple_titles"></a>
<h3>Selling property with multiple titles</h3>
<p>Where each parcel of real property sold is subject to a separate title, each is considered a separate CGT asset.</p>
<div class="example">
<p><b>Example – separate CGT assets</b></p>
<p>Bob owns a small farm which consists of three separately titled blocks, each valued at $700,000 by an independent valuer, but they are not able to be sold separately under the farm's land planning permit. As a separate asset,
all three titles would come within the exclusion of subsection 14-215(1) of the <i>Income Tax Assessment Act 1997</i> as each has a market value less than $750,000. This is the case regardless of whether there are one or
multiple contracts involved for the sale of the three titles.</p>
<p>Any restrictions imposed by planning permits on the titles do not change the fact that each parcel of real property is on a separate title, hence recognised as a separate asset.</p>
<span class="visuallyHidden">End of example</span>
</div>
<a name="When_we_withdraw_a_clearance_certificate_once_it_has_been_issued"></a>
<h3>When we withdraw a clearance certificate once it has been issued</h3>
<p>We may withdraw a clearance certificate at any time if we obtain further information indicating that the vendor is a foreign resident.</p>
<p>This is to ensure that the vendor is not able to use the clearance certificate where we determine they have no entitlement to it.</p>
<p>We would expect that the withdrawal of a clearance certificate, once issued, would only occur in very rare situations given the checks and processes that have been put in place when issuing them.</p>
<p>Where a purchaser has, in good faith, not withheld from the purchase price on the basis of being provided with a clearance certificate prior to settlement, the purchaser will have met their obligations under the withholding
rules.</p>
<p>Any subsequent decision by us to withdraw the clearance certificate from the vendor doesn't alter the fact that the purchaser had correctly complied with the withholding provisions at the time of settlement.</p>
<p>The purchaser will not be subject to any interest or penalty for failure to withhold in these circumstances, as at no stage was the purchaser required to withhold, given the vendor had produced a clearance certificate prior to
settlement.</p>
<a name="When_the_vendor_provides_a_fraudulent_clearance_certificate"></a>
<h3><a id="Whathappensifthevendorprovidesafraudulen" class="anchor"></a>When the vendor provides a fraudulent clearance certificate</h3>
<p>If a purchaser receives a document that appears to be a genuine and valid clearance certificate, and in good faith relies on that document to not withhold, we will not pursue the purchaser for the withholding.</p>
<p>If the document is subsequently found to be fraudulent, we will hold the vendor liable for making a false and misleading statement and may prosecute them.</p>
<a name="Deceased_estates"></a>
<h3>Deceased estates</h3>
<p>We have set out in a legislative instrument that no withholding (and hence no clearance certificate) is required in the following circumstances:</p>
<ul>
<li>a beneficiary acquires ownership of the relevant asset under the deceased individual’s will, by operation of an intestacy law etc. For example, the name on the title deed is Joe Smith who is executor for Mary Smith estate
</li>
<li>a beneficiary acquires ownership of the relevant asset from the legal personal representative (executor/trustee) of the deceased individual in a manner not described above</li>
<li>the property devolves to the legal personal representative (executor/trustee) following the death of the individual</li>
<li>a surviving joint tenant acquires the deceased joint tenant’s interest in a CGT asset. Where the title deed is under the surviving joint tenant's name only, a clearance certificate is required.</li>
</ul>
<p>The operation of the Instrument extends to circumstances where assets pass to beneficiaries of a testamentary trust. For more information, see
<a href="https://www.legislation.gov.au/Details/F2016L01396" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – deceased estates and legal personal representatives<span>External Link</span></a>.
</p>
<p><b>Any other transfer or disposal of the relevant asset by the legal personal representative will create a withholding obligation</b>. For example, the legal personal representative (executor/trustee) may decide to transfer or
dispose of the relevant assets to a third party.</p>
<a name="Situations_involving_mortgagors_and_mortgagees"></a>
<h3><a id="Situationsinvolvingmortgagorsandmortgage" class="anchor"></a>Situations involving mortgagors and mortgagees</h3>
<p>This concerns situations where a mortgagor (borrower) has borrowed funds from a mortgagee (creditor, for example a bank), that mortgagor is unable to repay the loan and the mortgagee requires them to sell the secured asset
which is subject to withholding (referred to as property in this section).</p>
<p>There are three situations where this commonly applies:</p>
<ul>
<li><b>Situation 1</b> – the mortgagor retains title to the sale as the mortgagee has not repossessed the title to the property but has ordered its sale.</li>
<li><b>Situation 2</b> – where the mortgagee does take possession of the property and sells in that capacity, but there is no transfer of title from mortgagor to mortgagee.</li>
<li><b>Situation 3</b> – the mortgagee has repossessed and taken title to the property from the mortgagor. This is commonly known as a foreclosure. In this situation there are two transactions where foreign resident capital
gains withholding may apply<ul>
<li>the transaction concerning the transfer of title from the mortgagor to the mortgagee (generally deemed to be a sale of the property at market value)</li>
<li>the transaction concerning the transfer of title from the mortgagee to the ultimate purchaser. </li>
</ul> </li>
</ul>
<a name="Applying_for_the_clearance_certificate_or_vendor_variation"></a>
<h4>Applying for the clearance certificate or vendor variation</h4>
<p>The entity with the title to the property is required to obtain the clearance certificate so foreign resident capital gains withholding won't apply.</p>
<p>In situation 1, the mortgagor remains the legal owner of the property. Therefore it is the mortgagor who has to obtain the clearance certificate and ensure it is provided to the ultimate purchaser for foreign resident
capital gains withholding not to apply.</p>
<p>In the event the mortgagor doesn't cooperate with the mortgagee, then the mortgagee, as a creditor, can apply for a foreign resident capital gains variation to have the withholding reduced to the extent that the amount it is
owed would not be covered by the sale proceeds if an amount was withheld.</p>
<p>In situation 2, the mortgagee cannot obtain a clearance certificate as they are not the legal owner of the property. However, the mortgagee can apply for a foreign resident capital gains variation to have the withholding
reduced to the extent that the amount it is owed would not be covered by the sale proceeds if an amount was withheld.</p>
<p>There is no specific requirement as to who physically provides the clearance certificate to the purchaser. Therefore, with both situation 1 and 2, if the mortgagor, as vendor, obtains the clearance certificate,
then provides it to the mortgagee, and the mortgagee provides it to the purchaser the ultimate purchaser can verify that the clearance certificate issued to the vendor is valid so long as it matches the name on the certificate
of title.</p>
<p>In situation 3, for foreign resident capital gains withholding not to apply, clearance certificates are required to be provided to the purchasers for both transactions, that is:</p>
<ul>
<li>repossession by the mortgagee from the mortgagor. The mortgagor, as the vendor, is the party that has title of the property and therefore would obtain the clearance certificate. As in situation 1, if the mortgagor doesn't
co-operate in this regard, the mortgagee, as a creditor, can apply for a foreign resident capital gains variation</li>
<li>sale of the property by the mortgagee to the ultimate purchaser. As the mortgagee has title to the property it is mortgagee that would obtain the clearance certificate.</li>
</ul>
<p>For more information, see
<a href="https://www.legislation.gov.au/Details/F2020L01291" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments - no residue after a mortgagee exercises a power of sale 2020<span>External Link</span></a>.
</p>
<a name="When_the_purchaser_should_withhold"></a>
<h4>When the purchaser should withhold</h4>
<p>For the purpose of this part it is assumed that the entity taken to be the vendor is not entitled to a clearance certificate and therefore foreign resident capital gains withholding applies.</p>
<p>In situation 1, the mortgagor remains the legal owner of the property. Therefore, if the mortgagor doesn't have a clearance certificate, the mortgagee is required to withhold. If either the mortgagor, as vendor, or the
mortgagee, as creditor, have applied and been granted a foreign resident capital gains withholding variation, the reduced rate of withholding specified in the variation notice applies.</p>
<p>In situation 2, the purchaser of the property would need to withhold at the 12.5% rate unless the mortgagee has obtained a foreign resident capital gains variation to have the withholding reduced to the extent that the
amount it is owed would not be covered by the sale proceeds if an amount was withheld. Where a variation has been obtained by the mortgagee, the purchaser withholds at the rate specified in the variation notice provided by us to
the mortgagee.</p>
<p>For situation 3, both transactions have to be considered:</p>
<ul>
<li>repossession by the mortgagee from the mortgagor – foreign resident capital gains withholding applies to this transaction with the mortgagee (creditor) having to withhold the 12.5% foreign resident capital gains withholding
unless either the mortgagor, as vendor, or the mortgagee, as creditor, have applied and been granted a foreign resident capital gains withholding variation.</li>
<li>sale of the property by the mortgagee to the ultimate purchaser – foreign resident capital gains withholding would apply. Therefore, unless the mortgagee has obtained a foreign resident capital gains withholding variation,
the ultimate purchaser is required to withhold at a rate of 12.5%.</li>
</ul>
<a name="Exceptions"></a>
<h4>Exceptions</h4>
<p>There may be a situation where the mortgagee’s name is not on the title as registered proprietor (although the mortgage will be listed as an interest on that title). This is because the mortgagee has not repossessed the
property. However, the contract of sale will show the vendor as a mortgagee in possession exercising a power of sale under the mortgage.</p>
<p>With respect to paying the foreign resident capital gain's withholding, the name of the vendor on the purchaser payment notification form must be the mortgagor (borrower) as the mortgagee (creditor) has never taken title to the
asset. This ensures that the foreign resident capital gains withholding credit that arises correctly goes to the borrower which is also the entity that is required to declare the capital gain.</p>
<a name="The_company_is_insolvent_or_under_external_administration"></a>
<h4>The company is insolvent or under external administration</h4>
<p>If the entity from which the asset is acquired is a company that satisfies any of the conditions in paragraph 161A(1)(a) of the <i>Corporations Act 2001</i> the transaction is excluded. The purchaser will not have a
withholding obligation. This exclusion applies broadly; it is not limited to transactions involving assets for which there is a receiver.</p>
<p>Although there is no need to provide a clearance certificate to the purchaser in this instance, the purchaser may want to see evidence from the company or mortgagee that the exclusion applies to support their decision not to
withhold.</p>
<a name="On_sale_of_property_with_no_immediate_transfer_of_title"></a>
<h3>On sale of property with no immediate transfer of title</h3>
<p>A vendor may dispose of a property subject to the withholding regime before they have taken ownership of it. This is also known as an 'on-sale'.</p>
<p>Company A signs a contract to sell a property for more than $750,000 to company B. At this time company B has not taken ownership of the property from company A. The legal ownership of the property remains with
company A. Company B’s name is not recorded against the property at the Land Titles Office. Prior to the settlement with company A, company B enters a contract with company C for disposal of the
property. As a result of this contract company C agrees to acquire the property and undertake the settlement with company A.</p>
<p>The clearance certificate is required from company A to company C.</p>
<a name="Relationship_breakdown"></a>
<h3>Relationship breakdown</h3>
<p>There is no need for a clearance certificate in these circumstances as long as:</p>
<ul>
<li>the transfer happens under the Family Law Act 1975 or under a State law, Territory law or foreign law relating to breakdowns of relationships between spouses</li>
<li>the transferee possesses a copy of the relevant documentation specified in subsection 126-5(1) of the <i>Income Tax Assessment Act 1997</i> (ITAA 1997) by the time of the finalisation of the transfer, showing that the
asset was acquired in accordance with subparagraph 3(i).</li>
</ul>
<p>For more information, see
<a href="https://www.legislation.gov.au/Details/F2016L01642" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – marriage or relationship breakdowns<span>External Link</span></a>
</p>
<a name="Income_tax_exempt_entities"></a>
<h3>Income tax exempt entities</h3>
<p>There is no need for the entity to provide a clearance certificate where the entity provides the purchaser with evidence that they are an income tax exempt entity. This should either be:</p>
<ul>
<li>a private binding ruling confirming its income tax exemption valid for the year in which the transaction is occurring</li>
<li>documentation showing that the entity is endorsed for income tax exemption as a registered charity under item 1.1 of section 50-5 of the <i>ITAA 1997</i>.</li>
</ul>
<p>For more information, see
<a href="https://www.legislation.gov.au/Details/F2017L00390" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – income tax exempt entities<span>External Link</span></a></p>
<a name="Government_authorities_and_not_for_profit_organisations"></a>
<h3>Government authorities and not-for-profit organisations</h3>
<p>The withholding applies to all transfers of property unless they are specifically exempted.</p>
<p>Government authorities and not-for-profit organisations are not specifically exempted from the withholding and must obtain a clearance certificate or apply for a variation otherwise the foreign resident capital gains
withholding will apply.</p>
<a name="Vendor_declarations"></a>
<h2><a id="Vendordeclarations" class="anchor"></a>Vendor declarations</h2>
<p>For all other asset types subject to foreign resident capital gains withholding, the vendor may provide the purchaser with a vendor’s declaration to specify withholding isn't required on the acquisition of the asset. There are
two types of vendor declarations:</p>
<ul>
<li>residency declaration</li>
<li>not an indirect Australian real property interest declaration.</li>
</ul>
<a name="Trusts_and_superannuation_funds"></a>
<h3>Trusts and superannuation funds</h3>
<p>The trustee of a trust or superannuation fund completes the vendor application in their own capacity as either a company or an individual if the following apply:</p>
<ul>
<li>they are the entity that has legal title to the asset</li>
<li>there is no mention of the trust or fund or 'in holding the property on trust'.</li>
</ul>
<a name="Residency_declaration_for_transactions_that_are_not_real_property"></a>
<h3>Residency declaration for transactions that are not real property</h3>
<p>Where the purchaser believes the vendor is a foreign resident, they can request the vendor make a declaration confirming their Australian tax residency.</p>
<p>Purchasers may believe the vendor is a foreign resident if either:</p>
<ul>
<li>they know the vendor has an address outside of Australia</li>
<li>sale proceeds are to be paid to a place outside of Australia.</li>
</ul>
<p>When a vendor makes a declaration stating they are an Australian tax resident, the purchaser will not treat them as a foreign resident.</p>
<p>Alternatively, the vendor may voluntarily provide a declaration to the purchaser without being asked to supply it.</p>
<a name="Purchaser_can_rely_on_the_declaration"></a><a name="Purchaser_can_rely_on_the_declaration"></a>
<h4>Purchaser can rely on the declaration</h4>
<p>The purchaser may rely on a residency declaration supplied by the vendor, where the purchaser is acquiring assets that are not Australian real property. When a purchaser receives a vendor declaration, they will not withhold any
amounts unless they know the declaration is false.</p>
<a name="Not_an_indirect_Australian_real_property_interest_declaration"></a>
<h3>Not an indirect Australian real property interest declaration</h3>
<p>A vendor may provide the purchaser with a declaration confirming either:</p>
<ul>
<li>that the membership interests they are disposing of are not indirect Australian real property interests</li>
<li>where an option is granted, that the membership interests subject to the option are not indirect Australian real property interests.</li>
</ul>
<p>This is allowed, as the vendor would be in the best position to determine if the membership interest being disposed of, or subject to an option, is an indirect Australian real property interest.</p>
<a name="Purchaser_can_rely_on_the_declaration"></a><a name="Purchaser_can_rely_on_the_declaration"></a>
<h4>Purchaser can rely on the declaration</h4>
<p>A ‘Not an indirect Australian real property interest’ declaration supplied by the vendor may be relied on by the purchaser where the purchaser is acquiring the membership interests in an Australian entity or an option over the
membership interests specified in the declaration.</p>
<p>Where a valid declaration is provided there will be no obligation on the purchaser of the membership interest, or grantee of the option transaction, to withhold. A declaration may be relied on unless the recipient knows the
declaration is false.</p>
<a name="Interests_on_the_stock_market"></a>
<h4>Interests on the stock market</h4>
<p>Where a vendor is disposing of the interest in the Australian entity on an approved stock exchange (such as the ASX or Chi-X), there is no need for the declaration to be provided. This is because interests disposed of on an
approved stock exchange are an ‘excluded asset’ for the purposes of this withholding.</p>
<p>This also applies to transactions that occur on a crossing system – for example, disposal of shares in dark pools.</p>
<a name="When_the_vendor_doesn_t_supply_a_declaration_when_requested"></a>
<h4>When the vendor doesn't supply a declaration when requested</h4>
<p>If the vendor doesn't supply a declaration when requested, the purchaser should withhold 12.5% from the purchase price at settlement.</p>
<a name="Valid_declaration_from_a_vendor"></a>
<h4>Valid declaration from a vendor</h4>
<p>A vendor’s declaration is valid for six months from the date it's signed by the vendor. It's only valid for the listed vendor and specified period on the declaration. The specified period may start retrospectively but
cannot exceed six months from the date the declaration is signed by the vendor.</p>
<p>It's the vendor’s responsibility to provide the purchaser with a declaration and ensure the date that it was provided to the purchaser is within the six-month validity period of the declaration.</p>
<p>For the purchaser to rely on the declaration, the:</p>
<ul>
<li>name of the vendor on the declaration must match the name of the owner of the asset (unless proof of name change is provided)</li>
<li>date the vendor provides the declaration to the purchaser must be a date that falls within the specified period on the declaration.</li>
</ul>
<p>If the declaration doesn't meet the above conditions, the purchaser is required to withhold 12.5% of the purchase price.</p>
<a name="How_to_declare"></a>
<h4>How to declare</h4>
<p>There is no approved form that can be completed by the vendor for a declaration. But we have a template that can be used for this purpose.</p>
<p><b>Next step</b></p>
<ul>
<li>Download
<a class="download" href="/uploadedFiles/Content/LB_I/downloads/Foreign%20resident%20capital%20gains%20withholding%20-%20vendor%20declaration.pdf">Foreign resident capital gains withholding – vendor declaration (PDF, 222KB)<span class="visuallyHidden">This link will download a file</span></a>
</li>
</ul>
<a name="Multiple_vendors"></a>
<h4>Multiple vendors</h4>
<p>A declaration is only valid for the vendor specified in the declaration. If an asset is acquired from multiple vendors, each vendor would need to provide the purchaser with their own declaration, to ensure the withholding
obligation does not apply to each of them.</p>
<a name="Declarations_and_the_disposal_of_real_property"></a>
<h4>Declarations and the disposal of real property</h4>
<p>A vendor can't use a declaration to avoid having the purchaser withhold the 12.5% withholding in relation to the disposal of real property.</p>
<a name="False_vendor_declarations"></a>
<h4>False vendor declarations</h4>
<p>A purchaser can rely upon the declaration unless they know it to be false.</p>
<p>A purchaser will be treated as knowing a vendor declaration is false where they have specific knowledge of this fact. A purchaser will have such knowledge when they are a party to the fraud committed by the vendor, or when they
have other information that indicates the declaration is implausible. The fact the purchaser may have reasonable grounds to doubt the accuracy of the declaration does not, of itself, and without further information, mean the
purchaser can't rely on it.</p>
<a name="Penalties"></a>
<h4>Penalties</h4>
<p>A vendor that makes a false or misleading declaration must pay a penalty to the Commissioner. The amount of the penalty varies depending on the severity of the offence.</p>
<p>The penalty is:</p>
<ul>
<li>120 penalty units where the vendor has knowingly made a false or misleading declaration</li>
<li>80 penalty units where they have recklessly made a false or misleading declaration</li>
<li>40 penalty units where the declaration is false or misleading as a result of the vendor failing to take reasonable care.</li>
</ul>
<a name="Variations"></a>
<h2><a id="Variations" class="anchor"></a>Variations</h2>
<p>Vendors can apply for a variation where:</p>
<ul>
<li>they're not entitled to a clearance certificate</li>
<li>a vendor’s declaration is not appropriate</li>
<li>12.5% withholding is too high compared to the actual Australian tax liability on the sale of the asset.</li>
</ul>
<p>Reasons for a variation include:</p>
<ul>
<li>the vendor will not make a capital gain on the transaction (for example, because they will make a capital loss or a CGT roll-over applies)</li>
<li>the vendor will not have an income tax liability (for example, because of carried-forward capital losses or tax losses)</li>
<li>a creditor of the vendor has a mortgage or other security interest over the property, and the proceeds of sale available at settlement are insufficient to cover both the amount to be withheld and to discharge the debt the
property secures</li>
<li>a creditor acquires legal title to the property (that is, becomes the purchaser) as a result of an order for foreclosure, and its security would be further diminished as a result of having to comply with the withholding
obligation.</li>
</ul>
<a name="Foreign_residents_claiming_the_main_residence_exemption_as_a_reason_for_the_variation"></a>
<h3>Foreign residents claiming the main residence exemption as a reason for the variation</h3>
<p>A law change on 12 December 2019 means foreign residents can no longer claim the CGT main residence exemption as the reason for their variation unless, at the time of the CGT event, they were a foreign resident
continuously for six years or less and during that time one of the following occurred:</p>
<ul>
<li>either the foreign resident, their spouse, or their child under 18, had a terminal medical condition</li>
<li>their spouse, or their child who was under 18 years of age, dies</li>
<li>the CGT event happened because of a formal agreement following your divorce or relationship breakdown.</li>
</ul>
<p>If the foreign resident dies, the change also applies to:</p>
<ul>
<li>legal representatives, trustees and beneficiaries of deceased estates</li>
<li>surviving joint tenants</li>
<li>special disability trusts</li>
</ul>
<a name="When_the_change_applies"></a>
<h4>When the change applies</h4>
<p>The change applies to foreign resident vendors for properties acquired at or after 7:30 pm (AEST) 9 May 2017. The CGT main residence exemption no longer applies to disposals from that date unless any of the life
events (listed above) occur within six continuous years of that individual becoming a foreign resident for tax purposes.</p>
<p>The change only applies if the person is not an Australian resident for tax purposes at the time of the disposal, that is, when the person signs the contract to sell the property. Their residency status in earlier income years
will not be relevant. There will be no partial CGT main residence exemption available in these circumstances.</p>
<p>If a person has always been a foreign resident for tax purposes, it is unlikely they have ever resided in the property as their
<a href="/Individuals/Capital-gains-tax/Property-and-capital-gains-tax/Your-main-residence-(home)/">main residence</a> and are unlikely to meet the requirements for the CGT
<a href="/Individuals/Capital-gains-tax/Foreign-residents-and-capital-gains-tax/Main-residence-exemption-for-foreign-residents/">main residence exemption</a>.</p>
<a name="Legislative_Instruments"></a>
<h3>Legislative Instruments</h3>
<p>We have issued class variations for:</p>
<ul>
<li><a href="https://www.legislation.gov.au/Details/F2016L01396" class="external">deceased estates and legal personal representatives<span>External Link</span></a></li>
<li><a href="http://www.legislation.gov.au/Details/F2017L00390" class="external">income tax exempt entities<span>External Link</span></a></li>
<li><a href="https://www.legislation.gov.au/Details/F2016L01642" class="external">marriage or relationship breakdowns<span>External Link</span></a></li>
<li><a href="https://www.legislation.gov.au/Details/F2020L01291" class="external">no residue after a mortgagee exercises a power of sale<span>External Link</span></a></li>
</ul>
<p>If any of these class variations apply, the withholding rate is varied to nil and it is not necessary to apply for a variation.</p>
<a name="How_to_apply"></a><a name="How_to_apply"></a>
<h3>How to apply</h3>
<p>To apply for a variation, the vendor, the vendor’s representative or vendor’s creditor needs to complete the online
<a href="/frcgw_variation.aspx" class="newWindow" target="_blank">Variation application for foreign residents and other parties<span>This link opens in a new window</span></a>.</p>
<p>An application for a variation should be completed well in advance of the settlement date to ensure there is enough time to provide the information required to finalise the application.</p>
<p>Conveyancers, real estate agents and others charging a fee for services (but who are not legal practitioners or registered tax agents) should obtain a completed paper PDF version of the form from the vendor. They can then use
the details on the paper form to complete the online form, ensuring faster processing, as part of the settlement process.</p>
<p><b>Next step</b></p>
<ul>
<li>Complete the <a href="/Forms/Foreign-resident-capital-gains-withholding-rate-variation-paper-application-instructions/">Foreign resident capital gains withholding rate variation paper application</a></li>
</ul>
<p>For more information, see <a href="/law/view/document?DocID=COG/LCG20165/NAT/ATO/00001&PiT=99991231235958">LCR 2016/5</a> <i>Foreign resident capital gains withholding regime: the Commissioner's variation power</i></p>
<p>In the majority of cases (where we have all the required information), the variation notice will be issued within 28 days.</p>
<p>Variation notices will be sent by email if an email address is provided in the application. Otherwise, notices will be mailed to the vendor and the applicant using the addresses provided in the application. The variation notice
should be shown to the purchaser before settlement to ensure the reduced withholding rate applies.</p>
<a name="Calculating_the_reduced_rate_of_withholding"></a>
<h3>Calculating the reduced rate of withholding</h3>
<p>Vendors need to calculate their reduced rate of withholding. This could be a rate between nil and 12.49%.</p>
<p>The varied rate we approve will depend on the information provided by the vendor in their application.</p>
<a name="Unit_price_fluctuations"></a>
<h3>Unit price fluctuations</h3>
<p>If the indirect interest in taxable Australian real property is in a wholesale trust that has unit values that fluctuate daily, then there is a risk that the variation would become invalid as the unit selling price exceeds the
unit price specified in the conditions of the variation notice we issued.</p>
<p>As a solution to this potential problem, the variation condition we provide on the variation notice can provide a number of alternative prices, with a differing variation rate applying to each. If you are in this situation you
should provide information in relation to possible price differences and what you believe would be an appropriate variation rate within that price range – this information can be supplied in the attachment to the variation
application.</p>
<a name="Multiple_vendors"></a>
<h3>Multiple vendors</h3>
<p>A variation notice applies to the specified vendor and applicable asset on the notice. If an asset is acquired from multiple vendors, each vendor will need to supply the purchasers with separate variation notices if a reduced
rate of withholding is to apply.</p>
<p>For more information, see
<a href="https://www.legislation.gov.au/Details/F2016L01123" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities<span>External Link</span></a>
</p>
<a name="Valid_variation_notice"></a>
<h3>Valid variation notice</h3>
<p>A variation notice is valid up to and including the expiry date on the notice for the listed vendor and applicable asset on the notice.</p>
<p>It is the vendor’s responsibility to provide the purchaser with the variation notice and ensure it's valid at the time of settlement.</p>
<p>For the purchaser to rely on the variation notice, the:</p>
<ul>
<li>name of the vendor and applicable asset details on the notice must match those on the certificate of title or other asset ownership documentation (proof of name change should have been provided to us at the time of applying
as all variations are manually processed)</li>
<li>the settlement date must be on or before the expiry date on the variation notice.</li>
</ul>
<p>When a purchaser receives a valid variation notice from a vendor, they can rely on it and withhold amounts from payments at the reduced rate and pay by completing the
<a href="/Forms/Foreign-resident-capital-gains-withholding-purchaser-payment-notification-online-form-and-instructions/?anchor=BK_2Vendordetails#BK_2Vendordetails">Foreign Resident Capital Gains Withholding Purchaser Payment Notification</a>
form.</p>
<p>If the variation notice doesn't meet the above conditions, the purchaser is required to withhold 12.5% of the purchase price.</p>
<p>A purchaser can check the validity of a variation notice with us by phoning <b>13 28 66</b> (Fast Key Code <b>4</b> <b>2</b>) prior to deciding whether to withhold the 12.5% amount from the purchase price. To
confirm the validity, the purchaser must provide the:</p>
<ul>
<li>BET number from the ‘Our reference’ field at the top of the notice</li>
<li>vendor’s name, varied rate and applicable asset details as they appear on the notice.</li>
</ul>
<a name="Calculating_the_withholding"></a>
<h2><a id="Calculatingthewithholding1" class="anchor"></a>Calculating the withholding</h2>
<a name="Purchase_price_vs_market_value"></a>
<h3>Purchase price vs market value</h3>
<p>With taxable Australian real property, the market value determines whether this withholding measure needs to be considered.</p>
<p>In most cases, the market value of a property should be the same as the purchase price. Where the purchase price has been negotiated between the vendor and the purchaser, acting at arm’s length, we will accept the purchase
price as a proxy for market value.</p>
<p>However, there could be circumstances where the market value is different to the stated purchase price (for example, where the vendor and purchaser are related parties and did not deal with each other at arm’s length). In such
cases, we won't accept the purchase price as a proxy for market value and the purchaser will need to seek a separate expert evaluation.</p>
<a name="Purchase_price_vs_first_element_of_the_cost_base"></a>
<h3>Purchase price vs first element of the cost base</h3>
<p>The legislation provides that the purchaser applies the 12.5% withholding rate to the first element of the cost base of the asset the vendor is disposing of.</p>
<p>The first element of the cost base is a tax technical term, which is the money paid, or required to be paid, to acquire the asset and the market value of any property given, or required to be given, in respect of acquiring the
asset.</p>
<p>In most cases, the first element of the cost base should be equivalent to the purchase price. Where the purchase price has been negotiated between the vendor and the purchaser, acting at arm’s length, we will accept the
purchase price as a proxy for the first element of the cost base.</p>
<p>Where a sales contract contains assets both subject to this withholding measure and not subject to this withholding measure, the purchaser and vendor can decide to come to an agreement as to what are the respective market
values of each asset, in determining whether withholding should be imposed upon that share of the purchase price for each asset. Where the parties to the contract are not dealing at arm's length an independent valuer may need to
be included in the valuation process.</p>
<a name="Multiple_properties_in_one_transaction"></a>
<h3>Multiple properties in one transaction</h3>
<p>A vendor may be disposing of multiple properties in one transaction, the combined value of which exceeds $750,000. The withholding is based on the market value of a property being disposed of not a combination of all the
properties being disposed of, therefore each property needs to be assessed separately for withholding</p>
<a name="No_additional_payment_on_top_of_the_agreed_purchase_price"></a>
<h3>No additional payment on top of the agreed purchase price</h3>
<p>The obligation for the purchaser to withhold an amount and pay it to us isn't an additional payment on top of the agreed purchase price.</p>
<p>The withholding amount is taken from the purchase price the purchaser has agreed to pay the vendor.</p>
<a name="How_withholding_applies_to_deposits_or_instalments"></a>
<h3>How withholding applies to deposits or instalments</h3>
<p>Withholding is not required from deposits paid on signing of the contract.</p>
<p>If payments are to be made in multiple instalments across the contract period, withholding should only occur when the final payment is made at settlement. The withholding amount is still calculated using the full purchase price
of the asset.</p>
<a name="When_the_contract_doesn_t_settle"></a>
<h3>When the contract doesn’t settle</h3>
<p>If for some reason the contract is not completed (settled), there is no obligation on the purchaser to withhold. This is because the vendor has not received the agreed purchase price for the asset.</p>
<a name="Multiple_purchasers__the_ATO_online_form_will_help_in_this_calculation_"></a>
<h3>Multiple purchasers (the ATO online form will help in this calculation)</h3>
<p>Where there are multiple purchasers, each purchaser doesn't look at their percentage interest in isolation to the other purchasers in determining whether they should withhold.</p>
<p>Each purchaser must withhold in proportion to their percentage of the total purchase price.</p>
<p>Where the asset being disposed of is taxable Australian real property, the market value of all purchasers' interests must be aggregated in examining whether the $750,000 market value threshold has been reached.</p>
<p>If the aggregated purchase price is $750,000 or more, each purchaser must withhold in proportion to their percentage of the total purchase price.</p>
<div class="example">
<p><b>Example – Multiple purchasers</b></p>
<p>You are purchasing a commercial property jointly with another entity. Your share of the acquisition is 40%, for which you are paying $400,000. This means the total property purchase price would be $1 million. Even though
your purchaser’s interest is below the $750,000 threshold, the property as a whole exceeds the $750,000 threshold so you will need to withhold.</p>
<p>Each purchaser will receive a different payment reference number, and a specified amount / rate to be paid via the online form. You may provide one cheque together with the details on how to apportion this amount.
</p>
<span class="visuallyHidden">End of example</span>
</div>
<a name="Multiple_vendors__the_ATO_online_form_will_help_in_this_calculation_"></a>
<h3>Multiple vendors (the ATO online form will help in this calculation)</h3>
<p>If there are multiple vendors disposing of the asset, it's the total market value of the asset that determines whether withholding is required by the purchaser.</p>
<p>If the purchaser hasn't been provided with a clearance certificate, vendor declaration or a variation from any of the vendors, the purchaser must withhold 12.5% of the purchase price. The amount of withholding will be in
proportion to each vendor’s interest in the asset.</p>
<p>Where there are multiple Australian vendors disposing of the asset, each vendor should provide the purchaser with a separate clearance certificate which is to be in their name only.</p>
<p>Where one (but not all) of the vendors provides a clearance certificate or vendor declaration to the purchaser, the withholding obligation still applies, as there is still a foreign resident vendor to the transaction. The
amount of withholding is still on the entire first element of the cost base of the asset, not just the portion attributable to the relevant foreign resident vendor’s interest in the asset.</p>
<p>We recognise in this situation, any vendors subject to the withholding would apply for a variation to ensure the withholding amount better reflected the foreign resident vendor’s tax liability. They would receive a reduction in
the withholding rate accordingly.</p>
<p>To reduce the need for vendors to apply for variations in these situations, the purchaser may withhold in accordance with each vendor’s proportional interest in the purchase price, subject to any clearance certificate, vendor
declaration or vendor variation being provided prior to settlement.</p>
<p>For more information, see
<a href="https://www.legislation.gov.au/Details/F2016L01123/Explanatory%20Statement/Text" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities<span>External Link</span></a>
</p>
<p>The following examples are from the perspective of a purchaser determining their obligation to withhold. In all instances, it's assumed the purchase price is $750,000 or more.</p>
<div class="example">
<p><b>Example – Joint owners, but only one vendor is an Australian resident</b></p>
<p>The purchaser has to withhold as there is a foreign resident. The withholding is based on the full purchase price of the property. The purchaser would need to see the clearance certificate from the Australian resident vendor.
Otherwise, they would have to withhold on their interest within the property they are disposing of.</p>
<p>If a clearance certificate is provided before settlement, then the purchaser doesn't have to withhold. The withholding would be on the full purchase price of the property – but we allow the withholding to be calculated only
on the foreign resident’s interest in the property.</p>
<span class="visuallyHidden">End of example</span>
</div>
<p> </p>
<div class="example">
<p><b>Example – Foreign resident vendor provides a variation</b></p>
<p>The circumstances are identical, but now the foreign resident vendor shows a variation notice and the Australian vendor provides a clearance certificate. There is no withholding on the Australian resident’s interest in the
property. There is withholding on the foreign resident’s interest in the purchase price of the property – but the rate of withholding is the withholding rate as specified on the variation notice issued by us to the foreign
resident vendor, not 12.5%.</p>
<span class="visuallyHidden">End of example</span>
</div>
<p> </p>
<div class="example">
<p><b>Example – Multiple foreign resident vendors</b></p>
<p>As the property is being sold by foreign residents, the purchaser knows they must withhold. They have not received a clearance certificate, so must assume all the vendors are foreign residents.</p>
<p>With respect to each foreign resident vendor, the amount of withholding is based on their specific interest in the property – their share of the purchase price.</p>
<p>The purchaser must consider if any of these vendors has supplied a variation notice. If no variation notice is received, the withholding is 12.5% of the contract purchase price, with each vendor being subject to an amount
reflective of their interest in the property being sold.</p>
<p>If variation notices are provided by some or all of the foreign resident vendors, the purchaser must calculate the specific withholding rate applicable to each vendor.</p>
<p>For vendors that don't supply a variation notice, the withholding is 12.5% of their share of the contract purchase price, reflective of their interest in the property being sold.</p>
<p>For vendors that supply a variation notice, the rate of withholding applicable to their specific interest in the purchase price of the property will be the withholding rate as specified on the variation notice issued by us to
that particular foreign resident vendor. It may be the purchaser has to withhold 8% from one vendor, and 3% from another vendor.</p>
<span class="visuallyHidden">End of example</span>
</div>
<a name="When_the_purchaser_fails_to_withhold"></a>
<h3>When the purchaser fails to withhold</h3>
<p>If the purchaser fails to withhold when they should, a penalty may be imposed by the Commissioner, equal to the amount that was required to be withheld and paid. General interest charges will also be applied.</p>
<a name="Goods_and_services_tax"></a>
<h2><a id="Goodsandservicestax" class="anchor"></a>Goods and services tax</h2>
<p>For some transactions, it may be necessary to determine if the purchase price needs to be adjusted for GST in determining the price on which the withholding is applied.</p>
<p>Where a purchaser isn't registered for GST or the supply of the asset isn't a taxable supply (for example because the vendor isn't registered for GST or the supply is input taxed), or the purchaser isn't entitled to any input
tax credit, the GST inclusive purchase price payable by the purchaser may be used in determining how much withholding is required.</p>
<p>Where the purchaser is registered for GST and the transaction is a taxable supply*, and the purchaser is entitled to an input tax credit, the GST inclusive purchase price less the input tax credit may be used by the purchaser
in determining how much withholding is required.</p>
<p>The purchase price can't be used as a proxy for market value if the purchaser has paid a premium, or the parties have not dealt with each other at arm’s length.</p>
<p>* The sale of existing residential premises (but not commercial residential premises or new residential premises) is input taxed and therefore not a taxable supply. Where the asset is shares (for example company title
interests), the supply of shares is input taxed and therefore not a taxable supply.</p>
<a name="An_exception___the_margin_scheme"></a>
<h3>An exception – the margin scheme</h3>
<p>If the margin scheme is used, a purchaser cannot claim input tax credits on that acquisition, even if they are registered for GST and intend to use the purchased property for a creditable purpose.</p>
<p>In these instances, a GST registered purchaser should calculate the 12.5% withholding by using the GST inclusive price, the same as non-registered purchasers.</p>
<a name="Leases"></a>
<h2><a id="Leases" class="anchor"></a>Leases</h2>
<a name="Acquisition_of_a_lease"></a>
<h3>Acquisition of a lease</h3>
<p>The acquisition of a lease with a market value of $750,000 or more from a foreign resident lessor would be subject to the 12.5% withholding.</p>
<a name="Withhold_amount_if_paying_a_premium_for_the_lease"></a>
<h3>Withhold amount if paying a premium for the lease</h3>
<p>Withholding is only required if the market value of the lease is $750,000 or more. If a lessee has paid a premium for a lease, that premium is part of the first element of the cost base of the leased asset upon which the
12.5% withholding applies.</p>
<a name="Rent_and_outgoings"></a>
<h3>Rent and outgoings</h3>
<p>Rent and outgoings are not included in determining the $750,000 market value and do not form part of the first element of the cost base, of a lease.</p>
<a name="Options"></a>
<h2><a id="Options" class="anchor"></a>Options</h2>
<p>The acquisition of an option to acquire an asset subject to this withholding measure from a foreign resident would be subject to the 12.5% withholding unless the vendor provides the purchaser with a valid
<a href="#Vendordeclarations" class="bookmark">declaration</a> or another <a href="#Exceptions" class="bookmark">exception</a> or <a href="#Excludedassets" class="bookmark">exclusion</a> applies. However, where the market value
of the option being acquired is less than $8 no withholding applies and no Purchaser payment notification form is required to be submitted by the purchaser.</p>
<p>Where the option involved is a put option, the grantee is not required to withhold an amount because the grantee of a put option has acquired a right to sell, not an option to acquire, the underlying asset.</p>
<p>Where a purchaser acquires the asset as a result of exercising an option, the amount to which the 12.5% withholding applies is the amount paid for the asset and the market value of any property they gave for the option (or to
renew or extend the option), but excluding what the purchaser already paid for the option.</p>
<a name="When_an_option_contract_is_entered_before_1_July_2016_but_exercised_after_that_date"></a>
<h3>When an option contract is entered before 1 July 2016 but exercised after that date</h3>
<p>When the option was granted has no bearing on the foreign resident capital gains withholding implications. It is the time of exercise of the option that is the relevant point at which the grantee must consider whether the
foreign resident capital gains withholding provisions apply to the amount they are paying the grantor.</p>
<p>Where the option is exercised on or after 1 July 2016 and the asset being acquired is a CGT asset subject to the withholding rules, then the withholding provisions do apply to the first element of the cost base of that
relevant asset (we accept this is the purchase price of the asset where there is an arm’s length transaction). This is the case even when the option was granted prior to 1 July 2016 or where the option contract doesn't
consider foreign resident capital gains withholding.</p>
<p>The withholding is avoided if the vendor provides the purchaser with a valid <a href="#Clearancecertificates" class="bookmark">clearance certificate</a> or declaration, or another exception or exclusion applies.</p>
<p>A purchaser that withheld in accordance with their federal income tax obligations would be protected by sub-section 16-20(2) of Schedule 1 to the <i>Taxation Administration Act 1953</i>. This provides that a
purchaser's liability to pay the purchase price is reduced by the withholding amount paid to the Commissioner.</p>
<a name="Earnouts"></a>
<h2><a id="Earnouts" class="anchor"></a>Earnouts</h2>
<p>How the rules apply will depend on whether the earnout right is one of the following.</p>
<a name="Look_through_standard_earnout_rights"></a>
<h3>Look-through standard earnout rights</h3>
<p>The purchaser is required to withhold and pay to the Commissioner 12.5% of the first element of the CGT asset’s cost base just after the acquisition. The first element of the CGT asset’s cost base doesn't include any financial
benefit the purchaser provides under a look-through standard earnout right relating to the CGT asset.</p>
<p>The purchaser is also required to withhold and pay to the Commissioner 12.5% of the <a href="#Marketvalue" class="bookmark">market value</a> of the financial benefits provided by the purchaser under the earnout right, unless
the entity receiving the financial benefit is not a <a href="#Whenthevendoristreatedasaforeignresident" class="bookmark">relevant foreign resident</a> at the time the financial benefit is provided.</p>
<a name="Non_look_through_standard_earnout_right"></a>
<h3>Non-look-through standard earnout right</h3>
<p>The purchaser is required to withhold and pay to the Commissioner 12.5% of the first element of the CGT asset’s cost base. The non-look-through earnout right is property given by the purchaser in respect of acquiring the CGT
asset. Therefore, the first element of the CGT asset’s cost base includes the market value of the earnout right. The purchaser must ascertain the market value of the earnout right at the time of acquisition and include that
value in calculating the 12.5% withholding.</p>
<p>The purchaser is not required to withhold 12.5% of the market value of any financial benefits provided by the purchaser under the non-look-through earnout right.</p>
<a name="Look_through_reverse_earnout_right"></a>
<h3>Look-through reverse earnout right</h3>
<p>The purchaser is required to withhold and pay to the Commissioner 12.5% of the first element of the CGT asset’s cost base just after the acquisition. The first element of the CGT asset’s cost base is not reduced by the amount
of any financial benefit that you receive under a look-through earnout right relating to the CGT asset.</p>
<a name="Non_look_through_reverse_earnout_right"></a>
<h3>Non-look-through reverse earnout right</h3>
<p>The purchaser is required to withhold and pay to the Commissioner 12.5% of the first element of the CGT asset’s cost base. However, the purchaser has acquired more than one asset. The non-look-through earnout right is a
separate CGT asset acquired by the purchaser and not subject to the withholding. Therefore, the first element of the cost base of the CGT asset that is subject to withholding is the amount of the purchase price that is
reasonably attributable to that CGT asset.</p>
<a name="Earnout_rights_do_not_affect_the_market_value_of_the_underlying_asset"></a>
<h4>Earnout rights do not affect the market value of the underlying asset</h4>
<p>An earnout arrangement may be entered into at the time of sale of an asset where the vendor and purchaser do not agree on a fixed purchase price. However, the market value of an asset is not affected by the existence of an
earnout right that is created at the time of the asset’s sale.</p>
<a name="The_purchaser_cannot_use_the_upfront_payment_as_a_proxy_for_market_value"></a>
<h4>The purchaser cannot use the upfront payment as a proxy for market value</h4>
<p>Purchasers will need to ascertain the market value of the asset on a different basis, such as seeking an independent expert valuation.</p>
<a name="Share_issues___IPOs"></a>
<h2><a id="ShareissuesIPOs" class="anchor"></a>Share issues / IPOs</h2>
<p>The withholding obligation doesn't apply if the purchaser acquires shares as a result of being issued or allotted those shares through an Initial Public Offer (IPO) because the shares will not be indirect Australian real
property interests.</p>
<p>An indirect Australian real property interest is a membership interest (for example, a share) held by one entity in another entity if certain additional conditions are met.</p>
<p>At the time the share issue transaction is entered into, the shares are not membership interests that the issuing company holds in <b>another</b> entity (they are membership interests in the issuing company itself), and
therefore cannot be indirect Australian real property interests.</p>
<a name="An_option_to_acquire_shares"></a>
<h3>An option to acquire shares</h3>
<p>The acquisition of an option to be issued new shares in a company would not be an option that is subject to the withholding on the basis that any shares that could be acquired via the exercise of the option would not be an
indirect Australian real property interest. </p>
<a name="Paying_the_withholding"></a>
<h2><a id="Payingthewithholding" class="anchor"></a>Paying the withholding</h2>
<p>A purchaser must pay us the withholding equal to 12.5% of the first element of the CGT asset’s cost base (the cost base is generally equal to the purchase price). Where no money is paid or required to be paid, or the agreed
amount is under market value, then the 12.5% withholding is on the market value of the CGT asset.</p>
<p><b>Note:</b> The first element of cost base doesn't include any disbursements at settlement (for example, for council rates, water and sewer charges and strata levies). Therefore, the withholding amount is 12.5% of the purchase
price before adjustment for disbursements.</p>
<p>The purchaser is liable to withhold and pay this amount. If this does not occur when it should, we will hold the purchaser liable.</p>
<a name="When_the_payment_is_required"></a>
<h3>When the payment is required</h3>
<p>To pay the withholding to us, the purchaser must complete an online
<a href="/frcgw_payment_notification.aspx" class="newWindow" target="_blank">Foreign resident capital gains withholding Purchaser Payment Notification form<span>This link opens in a new window</span></a></p>
<p>Where there are multiple purchasers one form can be used if there are 10 or fewer purchasers, or purchasers can lodge a form individually.</p>
<p>Once a payment notification form is processed, a payment reference number (PRN) will be issued, along with a PDF icon that can be clicked on to obtain a downloadable payment slip and barcode to use at Australia Post.</p>
<p>Only one PRN is issued per purchaser payment notification form, even if multiple purchasers are supplied on the form.</p>
<p>The purchaser (or purchasers) must pay the withholding to us on or before the day they become the owner of the asset, and they require the PRN, payment slip and barcode to do this. Without these, the purchaser will not be able
to make the payment at Australia Post.</p>
<p>We encourage purchasers to submit the payment notification form to us as early as possible, to ensure they have the payment reference number at settlement.</p>
<p>If the purchaser fails to obtain a PRN and pay the withholding when they become the owner of the asset, general interest charges will be imposed.</p>
<p>There is a short grace period from, and including the day of settlement, for the withholding to be paid in full. General interest charges will accrue from the date of settlement if we don't receive the withholding within the
grace period.</p>
<p>All parties should view the Purchaser payment notification form before settlement proceeds and should contact us if there are changes to the settlement date on the form.</p>
<a name="Purchaser_payment_notification_form"></a>
<h4>Purchaser payment notification form</h4>
<p>Purchasers are <b>not</b> required to notify us of a transaction if:</p>
<ul>
<li>the purchase price of the real property is less than $750,000</li>
<li>all vendors have supplied <a href="#Clearancecertificates" class="bookmark">clearance certificates</a></li>
<li>all vendors have supplied <a href="#Vendordeclarations" class="bookmark">vendor declarations</a></li>
<li>all vendors provide a <a href="#Variations" class="bookmark">notice to vary</a> withholding set at 0%.</li>
</ul>
<p>When an amount is required to be withheld, a foreign resident capital gains withholding purchaser payment notification form must be completed by all the purchasers involved in the sale. The purchaser will need to provide the
details of the vendors and the asset in the application.</p>
<p>Once a payment notification form is processed, a PRN will be issued and a PDF icon they can click to obtain a downloadable barcode to use at Australia Post will be generated. It is recommended that the downloadable barcode
always be printed to avoid keying errors.</p>
<p>Only one PRN is issued per purchaser payment notification form, even if multiple purchasers are supplied on the form.</p>
<p>The full payment can be made using the PRN or payment slip provided. Where two or more purchasers are included in the transaction, they can choose to make separate payments and use the same PRN or payment slip.</p>
<a name="How_to_pay"></a>
<h4>How to pay</h4>
<p>There are three methods the purchaser can use to pay us.</p>
<ol>
<li>Transfer the amount via electronic funds transfer (or BPAY®)<ul>
<li>Bank: Reserve Bank of Australia<br> BSB: <b>093 003</b><br> Account number: <b>316 385</b><br> Account name: ATO direct credit account<br> Reference: Your payment reference number </li>
</ul> </li>
<li>In person at Australia Post<ul>
<li>the purchaser will need the barcode supplied to them after lodgment of the Foreign resident capital gains withholding purchaser payment notification. The post office accepts cheques up to $100 million. </li>
</ul> </li>
<li>Mail a cheque to us with the PRN (<b>Note:</b> Large withholders may pay the subdivision 14-D withholding amount by non-electronic means)<ul>
<li><b>Australian Taxation Office</b><br><b>Locked Bag 1936</b><br><b>ALBURY NSW 1936</b><br><b>Australia</b> </li>
</ul> </li>
</ol>
<a name="After_payment_has_been_made"></a>
<h4>After payment has been made</h4>
<p>A receipt from either Australia Post or the ATO is proof the purchaser has made the payment and fulfilled their obligations.</p>
<p>A payment confirmation email or letter will be sent to the nominated contact on the purchaser payment notification form.</p>
<p>Confirmation will be sent by email if an email address is provided in the foreign resident capital gains withholding purchaser payment notification, otherwise it will be mailed to the address of the contact.</p>
<p>Vendors will need a copy of the payment confirmation and use this information to complete their tax return.</p>
<a name="How_to_pay_when_travelling"></a>
<h4>How to pay when travelling</h4>
<p>We have an online version of the form, which provides an automatic PRN.</p>
<p><b>Only use this PDF form if</b> you anticipate not having internet access:</p>
<ul>
<li><a href="/Forms/Foreign-resident-capital-gains-withholding-purchaser-payment-notification-paper-form-instructions/">Foreign resident capital gains withholding purchaser payment notification paper form instructions</a></li>
</ul>
<a name="Compulsory_acquisitions_by_government_authorities"></a>
<h4>Compulsory acquisitions by government authorities</h4>
<p>Certain Australian government authorities can exercise powers under State and Territory legislation for the compulsory acquisition of real property. Generally the property is acquired, and ownership of the property passes, on
the date that the acquisition is published in the relevant government gazette.</p>
<p>In the context of a compulsory acquisition certain practical difficulties arise in connection with determining whether or not there is an obligation to withhold and working out the withholding amount to be paid on or before the
day the acquisition is published in the gazette. For example, the market value of the property being acquired may be the subject of a dispute at the time the acquisition is published.</p>
<a name="Payment_of_withholding_tax"></a>
<h5>Payment of withholding tax</h5>
<p>Under section 14-200 of Schedule 1 to the <i>Tax Administration Act 1953</i>, the Australian government authority is required to pay the foreign resident capital gains withholding tax on or before the date that the
authority became the property’s owner.</p>
<a name="Deferral_of_payment"></a>
<h5>Deferral of payment</h5>
<p>Subsection 255-10(2A) of Schedule 1 of the <i>Taxation Administration Act 1953</i> allows the Commissioner to defer the time for payment of tax-related liabilities (including withholding tax) due and payable by a
class of taxpayers. The Commissioner defers the payment by publishing a notice on our website. The Commissioner can defer the time for payment whether or not the liability has already arisen.</p>
<a name="Notice"></a>
<h5>Notice</h5>
<p>Until further notice, the Commissioner of Taxation has deferred the time for which the foreign resident capital gains withholding tax liabilities of an Australian government authority are due and payable where:</p>
<p>The exercise of the compulsory acquisition power is authorised under one or more of the following Acts:</p>
<ul>
<li><i>Acquisition of Land Act 1967</i> (Queensland)</li>
<li><i>Land Acquisition (Just Terms Compensation) Act 1991</i> (New South Wales)</li>
<li><i>Land Acquisition Act 1969</i> (South Australia)</li>
<li><i>The Land Acquisition and Compensation Act</i> 1986 (Victoria)</li>
<li><i>Land Acquisition Act 1993</i> (Tasmania)</li>
<li><i>Land Administration Act 1997</i> (Western Australia)</li>
<li><i>Land Acquisition Act 1994</i> (Australian Capital Territory)</li>
<li><i>Land Acquisition Act 1978</i> (Northern Territory)</li>
<li><i>Land Acquisition Act 1989</i> (Commonwealth of Australia).</li>
</ul>
<p>For an Australian government authority that is exercising its compulsory acquisition powers under one or more of the above Acts in relation to a compulsory acquisition, the due date for payment of the foreign resident capital
gains withholding tax is deferred to the earlier of:</p>
<ul>
<li>14 days after agreement or final determination of the compensation payable</li>
<li>14 days after agreement to pay an advance amount of compensation.</li>
</ul>
<p>As a consequence of this we will accept the government authority as meeting its obligation for the purposes of the withholding if it receives a valid clearance certificate from the vendor by the earlier of: </p>
<ul>
<li>14 days after agreement or final determination of the compensation payable</li>
<li>14 days after agreement to pay an advance amount of compensation.</li>
</ul>
<p>In terms of the amount of withholding it will be based upon the compensation amount paid that is equivalent to the first element of the CGT asset cost base (being that of the taxable Australian real property subject to the
gazettal).</p>
<p>As a compensation amount could include a value for disturbance and professional expenses or other assets other than the property, the government authority would need to establish a market value break-up of the payment related
to the property, and only withholding on that amount.</p>
<a name="Penalties"></a>
<h3>Penalties</h3>
<p>A purchaser that fails to withhold as required and pay it to us may be subject to a penalty equal to:</p>
<ul>
<li>$1,800 for contracts entered into on or after 1 July 2016 but before 1 July 2017</li>
<li>$2,100 for contracts entered into on or after 1 July 2017</li>
<li>the amount they failed to withhold.</li>
</ul>
<p>We are obliged to give written notice to the purchaser of their liability to pay the penalty and the reasons for imposing the penalty.</p>
<p>The purchaser will also be subject to the general interest charge on any amounts not paid to us by the required date.</p>
<a name="Foreign_resident_capital_gains_withholding_and_the_tax_return"></a>
<h2><a id="Foreignresidentcapitalgainswithholdingan" class="anchor"></a>Foreign resident capital gains withholding and the tax return</h2>
<p>The foreign resident vendor must lodge a tax return at the end of the financial year declaring:</p>
<ul>
<li>their Australian assessable income, including any capital gain from the disposal of the asset</li>
<li>whether the vendor will claim a credit for any withholding amount taken from their sale proceeds (for example, because they didn't provide the purchaser with a clearance certificate).</li>
</ul>
<p>A credit may be refunded in the relevant tax return if they don't have to pay capital gains tax on the sale of the property (for example, because it was their main residence).</p>
<p>A foreign resident will need to apply for a TFN before they lodge an Australian tax return to ensure they can claim a credit for the amount withheld and paid to the ATO by the purchaser.</p>
<p>In certain circumstances, an early tax return may be submitted. If a foreign resident vendor is not eligible to submit an early tax return, they must wait until the end of the financial year to submit it and receive a tax
credit for the withholding paid by the purchaser.</p>
<a name="Applying_the_credit"></a>
<h3>Applying the credit</h3>
<p>We will only apply the credit to the vendor when the:</p>
<ul>
<li>purchaser has paid the withholding to us</li>
<li>vendor has lodged an Australian income tax return claiming the credit.</li>
</ul>
<p>We'll give vendors confirmation that a withholding payment has been paid on their behalf.</p>
<p>In situations where the contract is signed in one financial year but the purchaser pays the withholding in the next financial year, we will apply the Commissioner's Remedial Power to allow the vendor to claim the credit in the
same tax return in which they need to declare the capital gain.</p>
<p>For more information, see
<a href="https://www.legislation.gov.au/Details/F2017L00992/Explanatory%20Statement/Text" class="external">Taxation Administration (Remedial Power – Foreign Resident Capital Gains Withholding) Determination 2017<span>External Link</span></a>
</p>
<a name="When_the_purchaser_withholds_but_doesn_t_pay_it_to_us"></a>
<h4>When the purchaser withholds but doesn't pay it to us</h4>
<p>The vendor cannot claim a credit for the withholding until the purchaser pays the withholding to us.</p>
<p>We will promptly take action to collect from the purchaser any withholding amount not paid by the due date.</p>
<p>If the vendor is concerned the purchaser may not pay the withholding, the vendor should seek legal advice.</p>
<a name="Amendments"></a>
<h3>Amendments</h3>
<p>A vendor may provide the purchaser with a clearance certificate or variation after the purchaser has submitted the purchaser payment notification.</p>
<p>Phone us on <b>13 28 66</b> (fast codes <b>4</b> <b>2</b>) for referral to the relevant area who will try to help you resolve this situation.</p>
<a name="More_information"></a>
<h2><a id="Moreinformation" class="anchor"></a>More information</h2>
<a name="Law_companion_rulings"></a>
<h3>Law companion rulings</h3>
<p>The following rulings describe how we apply the law:</p>
<ul>
<li><a href="/law/view/document?DocID=COG/LCR20165/NAT/ATO/00001&PiT=99991231235958">Foreign resident capital gains withholding regime: the Commissioner's variation power</a></li>
<li><a href="/law/view/document?DocID=COG/LCR20166/NAT/ATO/00001&PiT=99991231235958">Foreign resident capital gains withholding regime: amount payable to the Commissioner</a></li>
<li><a href="/law/view/document?DocID=COG/LCR20167/NAT/ATO/00001&PiT=99991231235958">Foreign resident capital gains withholding regime: options</a></li>
</ul>
<a name="Legislation_and_supporting_materials"></a>
<h3><a id="Legislationandsupportingmaterials" class="anchor"></a>Legislation and supporting materials</h3>
<p>On 22 June 2017
<a href="http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5891" class="external">Treasury Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Act 2017 (Act No. 57 of 2017)<span>External Link</span></a>
received royal assent.</p>
<p>On 25 February 2016 the
<a href="http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5585" class="external">Tax and Superannuation Laws Amendment (2015 Measures No. 6) Act 2016<span>External Link</span></a>
received royal assent.</p>
<p>The following information is available to help you meet your obligations:</p>
<ul>
<li><a href="/frcgw_clearance_certificate.aspx" class="newWindow" target="_blank">Clearance certificate application for Australian residents<span>This link opens in a new window</span></a></li>
<li>
<a href="/Forms/Capital-gains-withholding-clearance-certificate-online-application-for-Australian-residents/">Capital gains withholding clearance certificate application online form and instructions – for Australian residents</a>
</li>
<li><a href="/frcgw_variation.aspx" class="newWindow" target="_blank">Variation application for foreign residents and other parties<span>This link opens in a new window</span></a></li>
<li><a href="/Forms/Foreign-resident-capital-gains-withholding-rate-variation-application-online-form-and-instructions/">Foreign resident capital gains withholding rate variation application online form and instructions</a></li>
<li><a href="/frcgw_payment_notification.aspx" class="newWindow" target="_blank">Purchaser Payment Notification – Foreign resident capital gains withholding<span>This link opens in a new window</span></a></li>
<li>
<a href="/Forms/Foreign-resident-capital-gains-withholding-purchaser-payment-notification-online-form-and-instructions/">Foreign resident capital gains withholding purchaser payment notification online form and instructions</a>
</li>
<li><a href="http://tv.ato.gov.au/ato-tv/media?v=bd1bdiub5aqyzd" class="external">Foreign resident capital gains withholding payments (webinar recording)<span>External Link</span></a></li>
<li><a href="/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains-withholding---for-real-estate-agents/">Capital gains withholding – for real estate agent</a></li>
<li><a href="/Individuals/Capital-gains-tax/In-detail/Foreign-resident-capital-gains-withholding/Capital-gains-withholding---a-guide-for-conveyancers/">Capital gains tax withholding – a guide for conveyancers</a></li>
<li><a href="/General/Other-languages/In-detail/Chinese/Foreign-Resident-Capital-Gains-Withholding---Simplified-Chinese/">Foreign resident capital gains withholding – simplified Chinese</a></li>
<li><a href="/business/gst/in-detail/your-industry/property/gst-at-settlement/">GST at settlement</a></li>
</ul>
<a name="Legislative_instruments"></a>
<h3><a id="Legislativeinstruments" class="anchor"></a>Legislative instruments</h3>
<ul>
<li>Acquisitions from multiple entities – Federal Register of Legislation page
<a href="https://www.legislation.gov.au/Details/F2016L01123" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities<span>External Link</span></a>
</li>
<li>Deceased estates and legal personal representatives – Federal Register of Legislation page
<a href="https://www.legislation.gov.au/Details/F2016L01396" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – deceased estates and legal personal representatives<span>External Link</span></a>
</li>
<li>Marriage or relationship breakdowns – Federal Register of Legislation page
<a href="https://www.legislation.gov.au/Details/F2016L01642" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – marriage or relationship breakdowns<span>External Link</span></a>
</li>
<li>Exempt entities – Federal Register of Legislation page
<a href="http://www.legislation.gov.au/Details/F2017L00390" class="external">PAYG Withholding variation for foreign resident capital gains withholding payments – income tax exempt entities<span>External Link</span></a></li>
<li>No residue after a mortgagee exercises a power of sale –
<a href="https://www.legislation.gov.au/Details/F2020L01291" class="external">Federal Register of Legislation page PAYG Withholding variation for foreign resident capital gains withholding payments - no residue after a mortgagee exercises a power of sale 2020<span>External Link</span></a>
</li>
</ul>
<span class="hidden">The foreign resident capital gains withholding (FRCGW) apply to vendors disposing of certain taxable property under contracts entered into from 1 July 2016.</span>
</div>
<div class="widgetBody">
<div class="secondaryMenu">
<ul></ul>
</div>
</div>
<div class="widgetBody"><span class="accesspoint"></span><span class="lastmodified">Last modified: 08 Dec 2022</span><span class="quickCode">QC 48972</span></div>
</li>
</ul>
</div>
<!--googleoff: all-->
<!-- ITEM T -->
<div class="content-rating">
</div>
</article>
</div>
</div>
</section>
</main>
<!-- MAIN ENDS -->
<!-- Site feedback zone -->
<div class="layout-stripe site-feedback-zone">
<div class="layout-content-box">
<div id="qualtrics-feedback-zone">
</div>
</div>
</div>
<!--googleon: all-->
<!-- FOOTER STARTS, inherited from the home page-->
<footer>
<h2 class="sr-only">Footer</h2>
<div>
<!-- -x- -->
<div class="footer-nav-stripe layout-stripe">
<nav class="layout-content-box">
<div class="container-fluid">
<div class="row">
<div class="col-sm-3">
<h3 class="hidden-xs">About ATO</h3>
<a aria-expanded="false" data-toggle="collapse" class="visible-xs-block" aria-controls="footer-col-1" href="#footer-col-1"><h3>About ATO<span class="expander pull-right"><span aria-hidden="true" class="icon"></span><span class="sr-only">Toggle visibility of this section</span></span></h3></a>
<ul class="footer-nav-list collapse" id="footer-col-1">
<li><a href="/about-ato/who-we-are/">About us</a></li>
<li><a href="/About-ATO/Contact-us/">Contact us</a></li>
<li><a href="/General/Consultation/">Consultation</a></li>
<li><a href="/About-ATO/Careers/">Careers</a></li>
<li><a href="/Media-centre/">Media centre</a></li>
<li><a href="/About-ATO/Commitments-and-reporting/Taxpayers--charter/">Taxpayers' Charter</a></li>
<li><a href="/About-ATO/Research-and-statistics/">Research and statistics</a></li>
<li><a href="/General/Gen/Subscriptions/">Subscribe</a></li>
<li><a href="/About-ATO/Commitments-and-reporting/In-detail/Privacy-and-information-gathering/Privacy-policy/">Privacy</a></li>
</ul>
<h3 class="hidden-xs">Related sites</h3>
<a aria-expanded="false" data-toggle="collapse" class="visible-xs-block" aria-controls="footer-col-2" href="#footer-col-2"><h3>Related sites<span class="expander pull-right"><span aria-hidden="true" class="icon"></span><span class="sr-only">Toggle visibility of this section</span></span></h3></a>
<ul class="footer-nav-list collapse" id="footer-col-2">
<li><a href="http://www.abr.gov.au/">Australian Business Register</a></li>
<li><a href="http://www.tpb.gov.au/">Tax Practitioners Board</a></li>
<li><a href="/Links/">More related sites</a></li>
</ul>
</div>
<div class="col-sm-3">
<h3 class="hidden-xs">Tools</h3>
<a aria-expanded="false" data-toggle="collapse" class="visible-xs-block" aria-controls="footer-col-3" href="#footer-col-3"><h3>Tools<span class="expander pull-right"><span aria-hidden="true" class="icon"></span><span class="sr-only">Toggle visibility of this section</span></span></h3></a>
<ul class="footer-nav-list collapse" id="footer-col-3">
<li><a href="/Forms/?sorttype=SortByTopic&marketsegment=Entire%20Website">Forms and instructions</a></li>
<li><a href="/Rates/?sorttype=SortByTopic&marketsegment=Entire%20Website">Tax rates and codes</a></li>
<li><a href="/Calculators-and-tools/?sorttype=SortByTopic&marketsegment=Entire%20Website">Calculators and tools</a></li>
<li><a href="/About-ATO/Contact-us/Order-publications/">Order publications</a></li>
<li><a href="/General/Online-services/ATO-app/">ATO app including myDeductions</a></li>
</ul>
<h3 class="hidden-xs">Using ato.gov.au</h3>
<a aria-expanded="false" data-toggle="collapse" class="visible-xs-block" aria-controls="footer-col-4" href="#footer-col-4"><h3>Using ato.gov.au<span class="expander pull-right"><span aria-hidden="true" class="icon"></span><span class="sr-only">Toggle visibility of this section</span></span></h3></a>
<ul class="footer-nav-list collapse" id="footer-col-4">
<li><a href="/Accessibility/">Accessibility</a></li>
<li><a href="/General/Gen/Your-guide-to-smarter-searching/">Smarter searching</a></li>
<li><a href="/General/Other-languages/">Languages</a></li>
<li><a href="/General/Gen/Acknowledgment-of-country/">Acknowledgment of country</a></li>
<li><a href="/General/Gen/Our-commitment-to-you/">Our commitment to you</a></li>
<li><a href="/General/Gen/Disclaimer/">Disclaimer</a></li>
<li><a href="/Definitions/">Definitions</a></li>
<li><a href="/A-Z-index/AZItems.aspx?sorttype=AZIndex&marketsegment=Entire%20website">A-Z Index</a></li>
<li><a href="/Whats-new.aspx?marketsegment=Entire%20Website">What's new</a><button class="footer-popover-btn" aria-haspopup="true" data-original-title="" title=""><span class="icon" aria-hidden="true"></span><span class="sr-only">
See related links for <span class="associated-source">What's new</span></span></button>
<div class="footer-popover-content hide">
<ul>
<li><a href="/Whats-new.aspx?marketsegment=Entire%20Website">All</a></li>
<li><a href="/Whats-new.aspx?marketsegment=About%20ATO">About ATO</a></li>
<li><a href="/Whats-new.aspx?marketsegment=Individuals">Individuals</a></li>
<li><a href="/Whats-new.aspx?marketsegment=Business">Business</a></li>
<li><a href="/Whats-new.aspx?marketsegment=Non-profit">Non-profit organisations</a></li>
<li><a href="/Whats-new.aspx?marketsegment=Tax%20professionals">Tax professionals</a></li>
<li><a href="/Whats-new.aspx?marketsegment=Super">Super</a></li>
</ul>
</div>
</li>
<li><a href="/About-ATO/Contact-us/Report-fraud,-tax-evasion,-a-planning-scheme-or-unpaid-super/">Report tax evasion</a><button class="footer-popover-btn" aria-haspopup="true" data-original-title="" title=""><span class="icon"
aria-hidden="true"></span><span class="sr-only"> See related links for <span class="associated-source">Report tax evasion</span></span></button>
<div class="footer-popover-content hide">
<ul>
<li><a href="/General/The-fight-against-tax-crime/">The fight against tax crime</a></li>
<li><a href="/Forms/Tax-evasion-reporting-form/">Tax evasion reporting form</a></li>
<li><a href="/General/Tax-planning/Report-schemes-and-promoters/">Report avoidance schemes</a></li>
</ul>
</div>
</li>
<li><a href="/Sitemap/">Sitemap</a><button class="footer-popover-btn" aria-haspopup="true" data-original-title="" title=""><span class="icon" aria-hidden="true"></span><span class="sr-only"> See related links for <span
class="associated-source">Sitemap</span></span></button>
<div class="footer-popover-content hide">
<ul>
<li><a href="/About-ATO/Sitemap">About ATO</a></li>
<li><a href="/Individuals/Sitemap">Individuals</a></li>
<li><a href="/Business/Sitemap">Business</a></li>
<li><a href="/Non-profit/Sitemap">Non-profit organisations</a></li>
<li><a href="/Tax-professionals/Sitemap/">Tax professionals</a></li>
<li><a href="/Super/Sitemap">Super</a></li>
<li><a href="/General/Sitemap">General</a></li>
</ul>
</div>
</li>
</ul>
</div>
<div class="col-sm-3">
<h3 class="hidden-xs">Help for taxpayers</h3>
<a aria-expanded="false" data-toggle="collapse" class="visible-xs-block" aria-controls="footer-col-5" href="#footer-col-5"><h3>Help for taxpayers<span class="expander pull-right"><span aria-hidden="true" class="icon"></span><span class="sr-only">Toggle visibility of this section</span></span></h3></a>
<ul class="footer-nav-list collapse" id="footer-col-5">
<li><a href="/General/Aboriginal-and-Torres-Strait-Islander-people/">Aboriginal and Torres Strait Islander people</a></li>
<li><a href="/General/Education-zone/">Education zone</a></li>
<li><a href="/About-ATO/Commitments-and-reporting/In-detail/FOI/Freedom-of-information-disclosure-log/">Freedom of information</a></li>
<li><a href="/Individuals/Your-tax-return/How-to-lodge-your-tax-return/">Getting help with your tax</a><button class="footer-popover-btn" aria-haspopup="true" data-original-title="" title=""><span class="icon"
aria-hidden="true"></span><span class="sr-only"> See related links for <span class="associated-source">Getting help with your tax</span></span></button>
<div class="footer-popover-content hide">
<ul>
<li><a href="/Individuals/Your-tax-return/Before-you-prepare-your-tax-return/Work-out-if-you-need-to-lodge-a-tax-return/">Do you need to lodge a tax return?</a></li>
<li><a href="/Tax-professionals/Your-practice/Legal-practitioners/Client-record-administration/ ">Appoint someone to act on your behalf</a></li>
<li><a href="/Individuals/Your-tax-return/Help-and-support-to-lodge-your-tax-return/Tax-Help-program/">Tax help program</a></li>
<li><a href="/Business/Bus/Supporting-your-small-business/">Help for small business</a></li>
</ul>
</div>
</li>
<li><a href="/General/Norfolk-Island-tax-and-super/">Norfolk Island tax and super</a></li>
<li><a href="/general/online-services/online-security/">Online security</a></li>
<li><a href="/General/Other-languages/">Other languages</a></li>
<li><a href="/Individuals/People-with-disability/">People with disability</a></li>
</ul>
<h3 class="hidden-xs">Law rulings and policy</h3>
<a aria-expanded="false" data-toggle="collapse" class="visible-xs-block" aria-controls="footer-col-6" href="#footer-col-6"><h3>Law rulings and policy<span class="expander pull-right"><span aria-hidden="true" class="icon"></span><span class="sr-only">Toggle visibility of this section</span></span></h3></a>
<ul class="footer-nav-list collapse" id="footer-col-6">
<li><a href="/General/ATO-advice-and-guidance/">ATO advice and guidance</a></li>
<li><a href="/General/New-legislation/">New legislation</a></li>
<li><a href="/law">Legal database</a></li>
</ul>
</div>
<div class="col-sm-3">
<h3 class="hidden-xs">Getting it right</h3>
<a aria-expanded="false" data-toggle="collapse" class="visible-xs-block" aria-controls="footer-col-7" href="#footer-col-7"><h3>Getting it right<span class="expander pull-right"><span aria-hidden="true" class="icon"></span><span class="sr-only">Toggle visibility of this section</span></span></h3></a>
<ul class="footer-nav-list collapse" id="footer-col-7">
<li><a href="/About-ATO/Commitments-and-reporting/Taxpayers--Charter/Taxpayers--Charter---essentials/">Your rights and obligations</a></li>
<li><a href="/General/Tax-planning/">Tax planning</a></li>
<li><a href="/General/Fix-a-mistake-or-amend-a-return/">Fix a mistake or amend a return</a></li>
<li><a href="/General/Dispute-or-object-to-an-ATO-decision/">Dispute or object to an ATO decision</a></li>
<li><a href="/General/The-fight-against-tax-crime/">The fight against tax crime</a></li>
<li><a href="/general/Tax-avoidance-taskforce/">Tax avoidance taskforce</a></li>
<li><a href="/General/Tax-and-Corporate-Australia/">Tax and Corporate Australia</a></li>
<li><a href="/General/Tax-and-individuals---not-in-business/">Tax and individuals - not in business</a></li>
<li><a href="/General/Tax-and-small-business/">Tax and small business</a></li>
</ul>
</div>
<div class="col-sm-3">
<h3 class="hidden-xs"></h3>
<a aria-expanded="false" data-toggle="collapse" class="visible-xs-block" aria-controls="footer-col-8" href="#footer-col-8"><h3><span class="expander pull-right"><span aria-hidden="true" class="icon"></span><span class="sr-only">Toggle visibility of this section</span></span></h3></a>
<ul class="footer-nav-list collapse" id="footer-col-8"></ul>
</div>
</div>
</div>
</nav>
</div>
</div>
<div>
<div class="footer-social-stripe layout-stripe">
<div class="layout-content-box">
<div class="container-fluid">
<div class="row">
<h2 class="text-center" style="display: none;">ATO Social</h2>
</div>
<div class="row">
<div class="col-sm-4"><span class="copyright-message"><a href="https://www.ato.gov.au">Australian Taxation Office</a><span class="visible-xs-inline">©</span></span>
<p>Working for all Australians</p>
</div>
<div role="group" class="col-sm-4 social-feed-links"><span class="sr-only">Connect with us
on...</span><a onclick="ntptEventTag('ev=FooterFacebook');" href="http://www.facebook.com/atogovau" class="social-media-icon facebook variant-grey"><span class="sr-only">Facebook</span></a><a onclick="ntptEventTag('ev=FooterYoutube');" href="http://www.youtube.com/user/AusTaxOffice" class="social-media-icon youtube variant-grey"><span class="sr-only">YouTube</span></a><a onclick="ntptEventTag('ev=FooterTwitter');" href="https://twitter.com/ato_gov_au" class="social-media-icon twitter variant-grey"><span class="sr-only">Twitter</span></a><a onclick="ntptEventTag('ev=FooterLinkedIn');" href="http://www.linkedin.com/company/australian-taxation-office" class="social-media-icon linkedin variant-grey"><span class="sr-only">LinkedIn</span></a><a onclick="ntptEventTag('ev=FooterRSS');" href="/RSS-news-feeds.aspx" class="social-media-icon rss variant-grey"><span class="sr-only">RSS</span></a>
</div>
<div class="col-sm-4 footer-copyright hidden-xs">
<p><a href="/General/Gen/Copyright-notice/">© Commonwealth of Australia</a></p>
</div>
</div>
</div>
</div>
</div>
</div>
<div>
<div class="printStatement">
<h3>Our commitment to you</h3>
<p>We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.</p>
<p>If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.</p>
<p>Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.</p>
<p>If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.</p>
<h3>Copyright notice</h3>
<p>© Australian Taxation Office for the Commonwealth of Australia</p>
<p>You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).</p>
<!--<h3>Copyright</h3>
<p>© Commonwealth of Australia</p>
<p>This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved.</p>
<p>Requests for further authorisation should be directed to the Commonwealth Copyright Administration, Copyright Law Branch, Attorney-General's Department, Robert Garran Offices, National Circuit, BARTON ACT 2600 or posted at <a href="http://www.ag.gov.au/cca">http://www.ag.gov.au/cca</a>.</p>-->
</div>
</div>
<div class="build-version"> Build: 2022.08.18.1 </div>
</footer>
<!-- FOOTER ENDS -->
<script src="/js/vendor/jquery.mmenu.oncanvas.min.js"></script>
<script src="/js/vendor/jquery.mmenu.fixedelements.min.js"></script>
<script src="/js/vendor/jquery.mmenu.header.min.js"></script>
<script src="/js/GlobalConstants.js"></script>
<script src="/js/ExtendedFunctions.js"></script>
<script src="/js/SocialMediaLinks.js"></script>
<script src="/js/libs/accordion.js"></script>
<script src="/js/DisplayType.js"></script>
<script src="/js/accessibility.js"></script>
<script src="/js/UUIDCookieWriter.js"></script>
<script src="/js/redesign.min.js">
/* ATO_SPA(Visual Redesign) */
</script>
<script src="/js/alex.min.js">
/* ATO_SPA(Visual Redesign) */
</script>
<script src="/js/loop11-loader.js">
/* ATO_SPA(Visual Redesign) */
</script>
<script src="//cdn.loop11.com/embed.js" type="text/javascript" async="async'"></script>
<script src="/js/qualtrics-loader.js">
/* ATO_SPA(Visual Redesign) */
</script>
<script src="/js/DisplayGoogleForm.js">
/* ATO_SPA(GoogleSurveySF ) */
</script>
<script src="/misc/SPA/GSASearch/js/jquery-migrate.js">
/* ATO_SPA(GSASPABannerSearch) */
</script>
<script src="/misc/SPA/GSASearch/js/jquery.ba-hashchange.min.js">
/* ATO_SPA(GSASPABannerSearch) */
</script>
<script src="/misc/SPA/GSASearch/js/ato_search_config.js">
/* ATO_SPA(GSASPABannerSearch) */
</script>
<script src="/misc/SPA/GSASearch/js/ato_search_ga.js">
/* ATO_SPA(GSASPABannerSearch) */
</script>
<script src="/misc/SPA/GSASearch/js/spa.js">
/* ATO_SPA(GSASPABannerSearch) */
</script>
<script src="/misc/SPA/GSASearch/js/ato_search_spa.js">
/* ATO_SPA(GSASPABannerSearch) */
</script>
<script type="text/javascript" charset="utf-8" src="https://ato.inq.com/chatskins/launch/inqChatLaunch10005953.js"></script>
</form>Text Content
* Home
* Individuals Press right to open. You are in this area.
* Business Press right to open.
* Not-for-profit Press right to open.
* Super Press right to open.
* Tax professionals Press right to open.
* About ATO Press right to open.
* What's New
* ATO Community
* Legal database
* Tax Topics A-Z
Individuals
* New to tax Press right to open.
* Jobs and employment types Press right to open.
* Your tax return Press right to open.
* Income, deductions, offsets and records Press right to open.
* Investments and assets Press right to open.
* Medicare and private health insurance Press right to open.
* Help and paying the ATO Press right to open.
* Your situation Press right to open.
* Super Press right to open.
* Key links Press right to open.
New to tax
* How to apply for a TFN
* Create your myGov account and link it to the ATO
* Your tax residency
Jobs and employment types
* Income from more than one job
* Accessing your income statement
* Individual income tax rates
* How to find your TFN
* Update your TFN registration details
Your tax return
* Before you prepare your tax return
* How to lodge your tax return
* Help and support to lodge your tax return
* Check the progress of your tax return
* Correct (amend) your tax return
Income, deductions, offsets and records
* Income you must declare
* Deductions you can claim
* Working from home expenses
* Occupation and industry specific income and work-related expenses
* Offsets and rebates
* Records you need to keep
Investments and assets
* Residential rental properties and holiday homes
* Investing in shares
* Crypto asset investments
* Capital gains tax
Medicare and private health insurance
* Medicare levy
* Medicare levy surcharge
Help and paying the ATO
* Your notice of assessment
* Why you may receive a tax bill
* Tax support for individuals
Your situation
* Education and study loan
* When someone dies
* Retirement and leaving your job
* Coming to Australia or going overseas
Super
* Growing your super
* Keeping track of your super
* Unpaid super
* Withdrawing and using your super
Key links
* Tools and calculators
* myDeductions - how can it help
* ATO community
* Using ATO online services
* Other languages
* Forms and instructions
Business
* Registration Press right to open.
* Business activity statement Press right to open.
* Single Touch Payroll Press right to open.
* Online services Press right to open.
* Paying the ATO Press right to open.
* Key links Press right to open.
* Small business Press right to open.
* Key tax topics for business Press right to open.
Registration
* Work out which registrations you need
* Update your details
Business activity statement
* How to lodge your BAS
* Pay as you go instalments
* Pay as you go tax withheld
* Fringe benefits tax instalment
* Luxury car tax
* Wine equalisation tax
* Fuel tax credits
* Instalment notices for GST and PAYG instalments
Single Touch Payroll
* Start reporting
* Concessional reporting
* Need more time?
* Single Touch Payroll for employees
* News, events and resources
Online services
* Businesses
* Technical support
* System maintenance
Paying the ATO
* How to pay
* How much you owe
* Help with paying
* If you don't pay
Key links
* eInvoicing
* Tax tables
* Forms
* Privately owned and wealthy groups
* Public business and international groups
* Large business
* Trusts
* Help for identity theft
* Tax avoidance taskforce
Small business
* Small business newsroom
* Starting your own business
* Need tax help after hours?
* Small business entity concessions
* Supporting your small business
Key tax topics for business
* Goods and services tax (GST)
* Record keeping for business
* Buy or sell property
* Foreign investment in Australia
* Capital gains tax (CGT)
* Fringe benefits tax (FBT)
* Fuel schemes
* Business bulletins newsroom
* Income and deductions for business
* PAYG withholding
* Super for employers
* Reports and returns
* Engaging a worker
* Tax topics (A to Z)
Not-for-profit
* Getting started Press right to open.
* Types of Not-for-profit workers Press right to open.
* Online services Press right to open.
* Gifts and fundraising Press right to open.
* Statements and returns Press right to open.
* Your organisation Press right to open.
* Key links Press right to open.
* Paying the ATO Press right to open.
Getting started
* Starting an NFP
* Know your legal structure
* What type of NFP is your organisation?
* What tax concessions are available?
* Register your NFP
* Other registrations
* Getting endorsed
Types of Not-for-profit workers
* Your obligations to workers and independent contractors
* Not-for-profit volunteers
Online services
* Online security
* Technical support
* System maintenance
Gifts and fundraising
* Receiving tax-deductible gifts
* Tax deductible donations
* Valuing contributions and minor benefits
* Fundraising events
* Workplace and business support
* Tax and fundraising
* Helping in a disaster
* Gifts and fundraising for non-DGRs
Statements and returns
* Activity statements
* Annual GST returns
* Fringe benefits tax returns
* PAYG withholding
* Income tax returns
* Ancillary fund returns
* Franking credit refunds
* Common Reporting Standard
* National rental affordability scheme
Your organisation
* Do you have to pay income tax?
* GST
* Dealing with suppliers
* Investments, credits and refunds
* Records, reporting and paying tax
* State and territory taxes
* Changes to your organisation
Key links
* Not-for-profit newsroom
* Getting help
* Encouraging NFP participation in the tax system
* Induction package for administrators
* Not-for-profit Stewardship Group
* Australian Charities and Not-for-profits Commission
Paying the ATO
* How to pay
* How much you owe
* Help with paying
* If you don't pay
Super
* Super for individuals Press right to open.
* APRA-regulated funds Press right to open.
* Super for employers Press right to open.
* SuperStream Press right to open.
* Online services Press right to open.
* Self-managed super funds Press right to open.
* Key links Press right to open.
* Key tax topics for Super Press right to open.
Super for individuals
* Getting your super started
* Access the YourSuper comparison tool
* Growing your super
* Keeping track of your super
* Unpaid super
* Withdrawing and using your super
APRA-regulated funds
* News and alerts for APRA-regulated funds
* Services and support
* Reporting and lodgment dates
* Fund reporting protocol
* Reporting and administrative obligations
* Managing member benefits
* Paying benefits
Super for employers
* Work out if you have to pay super
* Setting up super for your business
* Paying super contributions
* Missed and late super guarantee payments
SuperStream
* SuperStream for employers
* SuperStream for SMSFs
* SuperStream for APRA-regulated funds
Online services
* Online security
* Technical support
* System maintenance
Self-managed super funds
* News and alerts
* Thinking about self-managed super
* Setting up
* Contributions and rollovers
* Investing
* Paying benefits
* Winding up
* Administering and reporting
* SMSF auditors
Key links
* Departing Australia Superannuation Payment
* Small Business Superannuation Clearing House
* Illegal super schemes
Key tax topics for Super
* Tax topics A-Z
Tax professionals
* Prepare and lodge Press right to open.
* Digital services Press right to open.
* Payment, interest and penalties Press right to open.
* Support and communication Press right to open.
* Your practice Press right to open.
* Dispute or object to a decision Press right to open.
* Key links Press right to open.
* Key tax topics for Tax professionals Press right to open.
Prepare and lodge
* Due dates
* Tax Time 2022
* Lodgment program framework
* Tax agent lodgment program
* BAS agent lodgment program
* Managing your lodgment program
* Lodgment program deferrals
Digital services
* Online services for agents
* Practitioner lodgment service
* Australian Business Register
* Access Manager
* myGovID and RAM
* System maintenance
* Troubleshooting
* Online security
Payment, interest and penalties
* Paying the ATO
* Interest and penalties
* Safe harbour
Support and communication
* Support for your practice
* Phone services
* News services
* Systems advice and alerts
* Consultation, open forums and speakers
* Tax professionals webcasts
* Digital education resources
Your practice
* Tax and BAS agents
* Legal practitioners
* Insolvency practitioners
* Digital service providers
Dispute or object to a decision
* Object to an ATO decision
* Remission of interest or penalties
* External review of our decisions
* Options for resolving disputes
Key links
* Tax professionals newsroom
* ATO community
* Tax Time Toolkit
* Cash flow coaching kit
* Forms and instructions
* Tax rates and codes
* Tax tables
* Foreign exchange rates
* Calculators and tools
* Fix mistake or amend
* Latest TPSG key messages
* Disaster events
Key tax topics for Tax professionals
* New legislation
* ATO advice and guidance
* Tax topics A-Z
About ATO
* Who we are Press right to open.
* Managing the tax and super system Press right to open.
* Commitments and reporting Press right to open.
* Research and statistics Press right to open.
* Careers Press right to open.
* ATO tenders and procurement Press right to open.
* Key links Press right to open.
Who we are
* Executive and governance
* Media centre
* Our history
Managing the tax and super system
* Strategic direction
Commitments and reporting
* Annual report and other reporting to Parliament
* Our scrutineers
* Taxpayers' charter
* Service commitments
* Consultation
* Information and privacy
* Our commitment to diversity
Research and statistics
* Tax and superannuation statistics
* Our research
Careers
* What we offer you
* What we look for and how to apply
* Entry level programs
* Current vacancies
ATO tenders and procurement
* The tendering process
* Complying with procurement policy and legislation
* Guidelines for contractors and suppliers
* Procurement related complaints
Key links
* Accessibility
* Annual Report
* Contact us
* Corporate plan
* Online services
* Scam alerts
Skip to main contentSkip to searchSkip to Alex Virtual Assistant
menu
Close
ATO
login
Close
search
Close
ask
Close
* Go to ato.gov.au
* What's New
* ATO Community
* Tax Topics A-Z
* Legal Database
* Login
Close popup
Close popup
LOGIN AS
Individual Sole Trader Business BAS Agent Tax Agent Access Manager Non-resident
LoginRegister ▶System maintenance and issuesAccess manager
Close popup
Search
Search
MAIN NAVIGATION
* Home
* Individuals You are in this area. Press down to open, up to collapse.
NEW TO TAX
* How to apply for a TFN
* Create your myGov account and link it to the ATO
* Your tax residency
JOBS AND EMPLOYMENT TYPES
* Income from more than one job
* Accessing your income statement
* Individual income tax rates
* How to find your TFN
* Update your TFN registration details
YOUR TAX RETURN
* Before you prepare your tax return
* How to lodge your tax return
* Help and support to lodge your tax return
* Check the progress of your tax return
* Correct (amend) your tax return
INCOME, DEDUCTIONS, OFFSETS AND RECORDS
* Income you must declare
* Deductions you can claim
* Working from home expenses
* Occupation and industry specific income and work-related expenses
* Offsets and rebates
* Records you need to keep
INVESTMENTS AND ASSETS
* Residential rental properties and holiday homes
* Investing in shares
* Crypto asset investments
* Capital gains tax
MEDICARE AND PRIVATE HEALTH INSURANCE
* Medicare levy
* Medicare levy surcharge
HELP AND PAYING THE ATO
* Your notice of assessment
* Why you may receive a tax bill
* Tax support for individuals
YOUR SITUATION
* Education and study loan
* When someone dies
* Retirement and leaving your job
* Coming to Australia or going overseas
SUPER
* Growing your super
* Keeping track of your super
* Unpaid super
* Withdrawing and using your super
KEY LINKS
* Tools and calculators
* myDeductions - how can it help
* ATO community
* Using ATO online services
* Other languages
* Forms and instructions
* Business Press down to open, up to collapse.
REGISTRATION
* Work out which registrations you need
* Update your details
BUSINESS ACTIVITY STATEMENT
* How to lodge your BAS
* Pay as you go instalments
* Pay as you go tax withheld
* Fringe benefits tax instalment
* Luxury car tax
* Wine equalisation tax
* Fuel tax credits
* Instalment notices for GST and PAYG instalments
SINGLE TOUCH PAYROLL
* Start reporting
* Concessional reporting
* Need more time?
* Single Touch Payroll for employees
* News, events and resources
ONLINE SERVICES
* Businesses
* Technical support
* System maintenance
PAYING THE ATO
* How to pay
* How much you owe
* Help with paying
* If you don't pay
KEY LINKS
* eInvoicing
* Tax tables
* Forms
* Privately owned and wealthy groups
* Public business and international groups
* Large business
* Trusts
* Help for identity theft
* Tax avoidance taskforce
SMALL BUSINESS
* Small business newsroom
* Starting your own business
* Need tax help after hours?
* Small business entity concessions
* Supporting your small business
KEY TAX TOPICS FOR BUSINESS
* Goods and services tax (GST)
* Record keeping for business
* Buy or sell property
* Foreign investment in Australia
* Capital gains tax (CGT)
* Fringe benefits tax (FBT)
* Fuel schemes
* Business bulletins newsroom
* Income and deductions for business
* PAYG withholding
* Super for employers
* Reports and returns
* Engaging a worker
* Tax topics (A to Z)
* Not-for-profit Press down to open, up to collapse.
GETTING STARTED
* Starting an NFP
* Know your legal structure
* What type of NFP is your organisation?
* What tax concessions are available?
* Register your NFP
* Other registrations
* Getting endorsed
TYPES OF NOT-FOR-PROFIT WORKERS
* Your obligations to workers and independent contractors
* Not-for-profit volunteers
ONLINE SERVICES
* Online security
* Technical support
* System maintenance
GIFTS AND FUNDRAISING
* Receiving tax-deductible gifts
* Tax deductible donations
* Valuing contributions and minor benefits
* Fundraising events
* Workplace and business support
* Tax and fundraising
* Helping in a disaster
* Gifts and fundraising for non-DGRs
STATEMENTS AND RETURNS
* Activity statements
* Annual GST returns
* Fringe benefits tax returns
* PAYG withholding
* Income tax returns
* Ancillary fund returns
* Franking credit refunds
* Common Reporting Standard
* National rental affordability scheme
YOUR ORGANISATION
* Do you have to pay income tax?
* GST
* Dealing with suppliers
* Investments, credits and refunds
* Records, reporting and paying tax
* State and territory taxes
* Changes to your organisation
KEY LINKS
* Not-for-profit newsroom
* Getting help
* Encouraging NFP participation in the tax system
* Induction package for administrators
* Not-for-profit Stewardship Group
* Australian Charities and Not-for-profits Commission
PAYING THE ATO
* How to pay
* How much you owe
* Help with paying
* If you don't pay
* Super Press down to open, up to collapse.
SUPER FOR INDIVIDUALS
* Getting your super started
* Access the YourSuper comparison tool
* Growing your super
* Keeping track of your super
* Unpaid super
* Withdrawing and using your super
APRA-REGULATED FUNDS
* News and alerts for APRA-regulated funds
* Services and support
* Reporting and lodgment dates
* Fund reporting protocol
* Reporting and administrative obligations
* Managing member benefits
* Paying benefits
SUPER FOR EMPLOYERS
* Work out if you have to pay super
* Setting up super for your business
* Paying super contributions
* Missed and late super guarantee payments
SUPERSTREAM
* SuperStream for employers
* SuperStream for SMSFs
* SuperStream for APRA-regulated funds
ONLINE SERVICES
* Online security
* Technical support
* System maintenance
SELF-MANAGED SUPER FUNDS
* News and alerts
* Thinking about self-managed super
* Setting up
* Contributions and rollovers
* Investing
* Paying benefits
* Winding up
* Administering and reporting
* SMSF auditors
KEY LINKS
* Departing Australia Superannuation Payment
* Small Business Superannuation Clearing House
* Illegal super schemes
KEY TAX TOPICS FOR SUPER
* Tax topics A-Z
* Tax professionals Press down to open, up to collapse.
PREPARE AND LODGE
* Due dates
* Tax Time 2022
* Lodgment program framework
* Tax agent lodgment program
* BAS agent lodgment program
* Managing your lodgment program
* Lodgment program deferrals
DIGITAL SERVICES
* Online services for agents
* Practitioner lodgment service
* Australian Business Register
* Access Manager
* myGovID and RAM
* System maintenance
* Troubleshooting
* Online security
PAYMENT, INTEREST AND PENALTIES
* Paying the ATO
* Interest and penalties
* Safe harbour
SUPPORT AND COMMUNICATION
* Support for your practice
* Phone services
* News services
* Systems advice and alerts
* Consultation, open forums and speakers
* Tax professionals webcasts
* Digital education resources
YOUR PRACTICE
* Tax and BAS agents
* Legal practitioners
* Insolvency practitioners
* Digital service providers
DISPUTE OR OBJECT TO A DECISION
* Object to an ATO decision
* Remission of interest or penalties
* External review of our decisions
* Options for resolving disputes
KEY LINKS
* Tax professionals newsroom
* ATO community
* Tax Time Toolkit
* Cash flow coaching kit
* Forms and instructions
* Tax rates and codes
* Tax tables
* Foreign exchange rates
* Calculators and tools
* Fix mistake or amend
* Latest TPSG key messages
* Disaster events
KEY TAX TOPICS FOR TAX PROFESSIONALS
* New legislation
* ATO advice and guidance
* Tax topics A-Z
* About ATO Press down to open, up to collapse.
WHO WE ARE
* Executive and governance
* Media centre
* Our history
MANAGING THE TAX AND SUPER SYSTEM
* Strategic direction
COMMITMENTS AND REPORTING
* Annual report and other reporting to Parliament
* Our scrutineers
* Taxpayers' charter
* Service commitments
* Consultation
* Information and privacy
* Our commitment to diversity
RESEARCH AND STATISTICS
* Tax and superannuation statistics
* Our research
CAREERS
* What we offer you
* What we look for and how to apply
* Entry level programs
* Current vacancies
ATO TENDERS AND PROCUREMENT
* The tendering process
* Complying with procurement policy and legislation
* Guidelines for contractors and suppliers
* Procurement related complaints
KEY LINKS
* Accessibility
* Annual Report
* Contact us
* Corporate plan
* Online services
* Scam alerts
* What's New
* ATO Community
* Legal database
* Tax Topics A-Z
* Home >
* Individuals>
* Capital gains tax>
* In detail>
* Foreign resident capital gains withholding
* Capital gains withholding: Impacts on foreign and Australian residents
Back
Show download pdf controls
Show print controls
Toggle List dropdown button
CAPITAL GAINS WITHHOLDING - IMPACTS ON FOREIGN AND AUSTRALIAN RESIDENTS
* Background Press right to expand, left to close.
* When the rules apply
* Online forms and instructions
* Asset types Press right to expand, left to close.
* Market value
* Excluded assets
* Exceptions
* Vendor Press right to expand, left to close.
* When the vendor is treated as a foreign resident Press right to expand,
left to close.
* Knowledge condition
* Evidence for the knowledge condition
* Clearance certificates Press right to expand, left to close.
* How to apply
* When to obtain a clearance certificate
* How long it takes
* Where we send the certificate
* Valid clearance certificate Press right to expand, left to close.
* What name should be on the clearance certificate
* Trusts and superannuation funds
* Consolidated groups and multiple entry groups Press right to expand, left
to close.
* Withholding and intra-group transactions
* Entity obtaining the clearance certificate
* The contract is for longer than 12 months
* Do the rules apply if the market value of the asset acquired is exactly
$750,000? Press right to expand, left to close.
* Estimated market value $750,000 or above
* Selling property with multiple titles
* When we withdraw a clearance certificate once it has been issued
* When the vendor provides a fraudulent clearance certificate
* Deceased estates
* Situations involving mortgagors and mortgagees Press right to expand, left
to close.
* Applying for the clearance certificate or vendor variation
* When the purchaser should withhold
* Exceptions
* The company is insolvent or under external administration
* On sale of property with no immediate transfer of title
* Relationship breakdown
* Income tax exempt entities
* Government authorities and not-for-profit organisations
* Vendor declarations Press right to expand, left to close.
* Trusts and superannuation funds
* Residency declaration for transactions that are not real property Press
right to expand, left to close.
* Purchaser can rely on the declaration
* Not an indirect Australian real property interest declaration Press right
to expand, left to close.
* Purchaser can rely on the declaration
* Interests on the stock market
* When the vendor doesn't supply a declaration when requested
* Valid declaration from a vendor
* How to declare
* Multiple vendors
* Declarations and the disposal of real property
* False vendor declarations
* Penalties
* Variations Press right to expand, left to close.
* Foreign residents claiming the main residence exemption as a reason for the
variation Press right to expand, left to close.
* When the change applies
* Legislative Instruments
* How to apply
* Calculating the reduced rate of withholding
* Unit price fluctuations
* Multiple vendors
* Valid variation notice
* Calculating the withholding Press right to expand, left to close.
* Purchase price vs market value
* Purchase price vs first element of the cost base
* Multiple properties in one transaction
* No additional payment on top of the agreed purchase price
* How withholding applies to deposits or instalments
* When the contract doesn’t settle
* Multiple purchasers (the ATO online form will help in this calculation)
* Multiple vendors (the ATO online form will help in this calculation)
* When the purchaser fails to withhold
* Goods and services tax Press right to expand, left to close.
* An exception – the margin scheme
* Leases Press right to expand, left to close.
* Acquisition of a lease
* Withhold amount if paying a premium for the lease
* Rent and outgoings
* Options Press right to expand, left to close.
* When an option contract is entered before 1 July 2016 but exercised after
that date
* Earnouts Press right to expand, left to close.
* Look-through standard earnout rights
* Non-look-through standard earnout right
* Look-through reverse earnout right
* Non-look-through reverse earnout right Press right to expand, left to
close.
* Earnout rights do not affect the market value of the underlying asset
* The purchaser cannot use the upfront payment as a proxy for market value
* Share issues / IPOs Press right to expand, left to close.
* An option to acquire shares
* Paying the withholding Press right to expand, left to close.
* When the payment is required Press right to expand, left to close.
* Purchaser payment notification form
* How to pay
* After payment has been made
* How to pay when travelling
* Compulsory acquisitions by government authorities Press right to expand,
left to close.
* Payment of withholding tax
* Deferral of payment
* Notice
* Penalties
* Foreign resident capital gains withholding and the tax return Press right to
expand, left to close.
* Applying the credit Press right to expand, left to close.
* When the purchaser withholds but doesn't pay it to us
* Amendments
* More information Press right to expand, left to close.
* Law companion rulings
* Legislation and supporting materials
* Legislative instruments
* CAPITAL GAINS WITHHOLDING: IMPACTS ON FOREIGN AND AUSTRALIAN RESIDENTS
Foreign resident capital gains withholding (FRCGW) applies to vendors
disposing of certain taxable property under contracts entered into from
1 July 2016.
The FRCGW tax rate is 12.5%.
It applies to real property disposals where the contract price is $750,000 or
more.
For contracts that are entered into from 1 July 2016 and before 1 July 2017,
even if they are not due to settle until after 1 July 2017, the FRCGW
withholding tax rate is 10% and applies to real property disposals where the
contract price is $2 million and above.
In this section
* Background
* Asset types
* Vendor
* Clearance certificates
* Vendor declarations
* Variations
* Calculating the withholding
* Goods and services tax
* Leases
* Options
* Earnouts
* Share issues / IPOs
* Paying the withholding
* Foreign resident capital gains withholding and the tax return
BACKGROUND
This existing withholding legislation assists the collection of foreign
residents’ Australian tax liabilities.
It imposes an obligation on purchasers to withhold 12.5% of the purchase
price and pay it to us, where a vendor enters into a contract on or after
1 July 2017 and disposes of certain asset types (or receives a lease premium
for the grant of a lease over Australian real property).
The foreign resident vendor must lodge a tax return at the end of the
financial year, declaring their Australian assessable income, including any
capital gain (profit) from the disposal of the asset.
A tax file number (TFN) is required to lodge a tax return; they will need to
apply for a TFN if they don't have one. The vendor may claim a credit for any
withholding amount paid to us in their tax return.
Australian resident vendors can avoid the requirement of the purchaser to
withhold the 12.5% by providing one of the following to the purchaser prior
to settlement:
* for Australian real property, a clearance certificate obtained from us
* Australian resident vendors selling real property will need to obtain a
clearance certificate from us prior to settlement, to ensure they don't
incur the 12.5% non-final withholding
* for other asset types, a vendor declaration
* the vendor may provide the purchaser with a vendor’s declaration to
specify withholding isn't required on the acquisition of the asset.
Foreign resident vendors may apply for a variation of the withholding rate or
make a declaration that a membership interest is not an indirect Australian
real property interest and therefore not subject to withholding.
Purchasers must pay the amount withheld at settlement to the Commissioner of
Taxation.
WHEN THE RULES APPLY
* An entity (the purchaser) becomes the owner of a capital gains tax (CGT)
asset as a result of acquiring it from a vendor (or vendors) under one or
more transactions.
* At least one of those vendors is a relevant foreign resident at the time
at least one of the transactions is entered into.
* The CGT asset is a certain type of Australian property or an option or
right to acquire such property.
* The purchaser acquires the CGT asset under a contract entered into on or
after 1 July 2016.
* There are no exceptions
While the objective of the rules is to assist in the collection of foreign
residents' CGT liabilities, the withholding tax will apply regardless of
whether the vendor's gain on the sale of the asset is subject to tax under
the CGT regime or as ordinary income.
The withholding obligation applies to both Australian resident and foreign
resident purchasers.
In this section
* Online forms and instructions
* Asset types
* Vendor
* Clearance certificates
* Vendor declarations
* Variations
* Calculating the withholding
* Paying the withholding
* Foreign resident capital gains withholding and the income tax return
* Legislation and other supporting materials
ONLINE FORMS AND INSTRUCTIONS
* Clearance certificate application for Australian residentsThis link opens
in a new window
* Capital gains withholding clearance certificate application online form
and instructions – for Australian residents
* Variation application for foreign residents and other partiesThis link
opens in a new window
* Foreign resident capital gains withholding rate variation application
online form and instructions
* Purchaser payment notificationThis link opens in a new window
* Foreign resident capital gains withholding purchaser payment notification
online form and instructions
ASSET TYPES
The legislation applies to the following asset types:
* real property – taxable Australian real property with a market value of
$750,000 or more
* vacant land, buildings, residential and commercial property
* mining, quarrying or prospecting rights where the material is situated
in Australia
* a lease over real property in Australia if a lease premium has been paid
for the grant of the lease
* other assets
* indirect Australian real property interests in Australian entities (that
is, a membership interest of 10% or more in an entity whose underlying
value is principally derived from Australian real property) – this
includes shares in a company that owns land or a building erected on
that land, where the ownership of the shares gives a right to occupy
that land or building (that is, a company title interest in real
property)
* options or rights to acquire any of the above asset types.
MARKET VALUE
In many cases, the market value of a property will be the purchase price.
Where the purchase price has been negotiated between the vendor and the
purchaser, acting at arm’s length, we will accept the purchase price as a
proxy for market value.
However, there could be circumstances where the market value is different to
the stated purchase price (for example, where the vendor and purchaser are
related parties and did not deal with each other at arm’s length). In such
cases, we will not accept the purchase price as a proxy for market value and
the purchaser will need to seek a separate expert evaluation.
Note: If the purchase price is used as a proxy for market value, the market
value is the purchase price before adjustment for any disbursements at
settlement (for example, council rates, water and sewer charges and strata
levies). Therefore, the $750,000 threshold test is applied to the purchase
price before adjustment for disbursements.
EXCLUDED ASSETS
Some assets are not subject to the withholding, including:
* taxable Australian real property with a market value of less than $750,000
* an indirect Australian real property interest providing a company title
interest with a market value of less than $750,000
* transactions conducted through an approved stock exchange
* transactions conducted using a broker-operated crossing system, such as a
‘dark pool’, as described in the ASIC Market Integrity Rules (ASX Market)
2010
* transactions subject to another withholding obligation
* securities lending arrangements, as these don't trigger a CGT liability
for the vendor and therefore no payment obligation is imposed
* transactions where the vendor is in external administration or
transactions arising from the administration of a bankrupt estate, a
composition or scheme of arrangement, a debt agreement, a personal
insolvency agreement, or same or similar circumstances under a foreign
law.
EXCEPTIONS
Foreign resident capital gains withholding doesn't apply when the vendor
disposes of either:
* an Australian real property and provides the purchaser with a clearance
certificate from us
* any other asset where the purchaser is given a vendor declaration
VENDOR
The vendor is the entity that holds the legal title to the asset this
withholding applies to.
Where the asset is held on behalf of another entity, the vendor is the legal
owner of the asset, for example, the trustee or custodian who holds the legal
title on behalf of beneficiaries.
WHEN THE VENDOR IS TREATED AS A FOREIGN RESIDENT
A vendor is treated as a foreign resident if:
* the vendor doesn't provide the purchaser with either a valid
* clearance certificate by settlement, if they are disposing of an asset
that requires a clearance certificate to be provided to avoid the
withholding being imposed
* vendor declaration stating they are an Australian resident, or that the
membership interest is not an indirect Australian real property
interest, when asked to do so by the purchaser with respect to a
transaction involving an asset for which a vendor declaration can be
used to avoid the withholding being imposed
* the purchaser applies the 'knowledge condition'.
KNOWLEDGE CONDITION
The knowledge condition is only relevant to purchases of indirect Australian
real property interests (other than company title interests) and options and
rights to acquire taxable Australian real property or indirect Australian
real property interests.
The knowledge condition will be satisfied where the purchaser either:
* knows or has reasonable grounds to believe the vendor is a foreign
resident
* does not reasonably believe the vendor is an Australian resident and
either
* has a record about the acquisition indicating the vendor has an address
outside Australia
* is authorised to provide a financial benefit (for example, make a
payment) to a place outside Australia (whether to the vendor or to
anybody else).
EVIDENCE FOR THE KNOWLEDGE CONDITION
A purchaser in applying the knowledge condition must rely upon that
information that it is aware of or has access to in making the decision. In
some circumstances this will only be the share registry of the target entity
whose interests are being acquired by the purchaser.
It would be expected that the purchaser would rely upon the share registry no
earlier than as at the date of the offer acceptance. Reliance from this date
reduces the possibility that changes in the vendors circumstances would occur
up to the date of the transaction so as to change the purchaser’s belief
about the vendor had they known of it before taking ownership of the interest
in the target.
Purchasers who are not comfortable determining whether the knowledge
condition is satisfied, may seek a vendor declaration confirming the vendor
is not a relevant foreign resident.
Failure by the vendor to provide the declaration in these circumstances can
be taken by the purchaser as confirmation that the vendor is a relevant
foreign resident.
CLEARANCE CERTIFICATES
A clearance certificate provides certainty to purchasers regarding their
withholding obligations. It confirms the withholding tax is not applicable to
the transaction.
The purchaser must withhold 12.5% of the purchase price in transactions
involving taxable Australian real property, or an indirect Australian real
property interest that provides company title interests, with a market value
of $750,000 or more, unless the vendor shows the purchaser a clearance
certificate from us.
We process applications in order of date of receipt. To avoid possible delays
in your settlement, apply online for a clearance certificate at least 28 days
before you require it.
It is the vendor’s responsibility to obtain the clearance certificate and
provide it to the purchaser at or before settlement. To avoid unanticipated
delays, and to ensure the certificate is valid at the time it is given to the
purchaser, vendors seeking a clearance certificate should apply through the
online form as early as practical in the sale process.
Without being presented with a valid clearance certificate, the purchaser
will be required to remit 12.5% of the purchase price to us if no other
exclusions apply.
HOW TO APPLY
The Australian resident entity (or their representative) will need to
complete an online Clearance certificate application for Australian
residentsThis link opens in a new window
Where there are multiple Australian resident vendors disposing of the asset,
each vendor should apply for a separate clearance certificate in their name
only.
Australian residents not required to lodge tax returns, such as aged
pensioners, are still required to obtain a clearance certificate.
If you are a foreign resident there is no point in you lodging an
application. However, if you may be entitled to a variation to the
withholding rate, then you can lodge a variation request.
If you can't access the webpage phone us on:
* 13 28 66 (Fast Key Code 4 2) within Australia
* +61 2 6216 1111 outside Australia to obtain details of what you need to
provide.
Where a valid clearance certificate is provided, the purchaser is not
required to withhold an amount from the purchase price for the vendor listed
in the clearance certificate.
If an Australian tax resident vendor has had withholding taken from their
sale proceeds, for example because they didn't provide the purchaser with a
clearance certificate, they will be able to claim a credit for that amount
when they lodge their tax return. This credit may be refunded if they don't
have to pay capital gains tax on the sale of the property (for example,
because it was their main residence).
Only an Australian resident entity* can obtain a clearance certificate.
Solicitors, tax agents or other representatives of the vendor can apply on
the vendor’s behalf.
Conveyancers, real estate agents and others charging a fee for services (but
who are not legal practitioners or registered tax agents) should obtain a
completed paper PDF version of the clearance certificate form from the
vendor. They can then use the details on the paper form to complete the
online form, ensuring faster processing, as part of the settlement process.
Next step
* Use the form Capital gains withholding clearance certificate application
paper form instructions – for Australian residents
If you need help to work out your residency, see Work out your residency
status for tax purposes.
*An Australian resident entity is one that is an Australian resident for tax
purposes. This isn't the same as the definition of residency for immigration
purposes, or for the Foreign Investment Review Board (FIRB) applications to
buy Australian property.
A clearance certificate only applies to the entity specified on the
certificate. If an asset has multiple vendors, each vendor will need to show
the purchaser a clearance certificate to ensure amounts are not withheld.
It's valid for 12 months from the date issued, so the vendor may be able to
use it for multiple disposals of real property that occur within the 12 month
period. The vendor doesn't have to reapply to us each time they dispose of a
property.
It may be provided to the purchaser at any time during the transaction, but
must be provided to the purchaser by settlement.
WHEN TO OBTAIN A CLEARANCE CERTIFICATE
An entity may apply for a clearance certificate at any time they are
considering the disposal of taxable Australian real property. This can be
before the property is listed for sale.
You should apply for a clearance certificate online at least 28 days before
you require it.
HOW LONG IT TAKES
We issue clearance certificates within 28 days of receiving the application.
Higher risk and unusual cases may also require greater manual intervention,
which could take longer.
If you lodge your application close to the settlement date, we cannot
guarantee we can process it by the settlement date as we will not
disadvantage those other applicants who applied earlier by delaying their
application to process yours.
WHERE WE SEND THE CERTIFICATE
Clearance certificates will be sent by email if an email address is provided
in the application. Care should be taken to ensure that the email address
supplied is current and correct to ensure a quick response. Otherwise
clearance certificates will be mailed to the vendor and the vendor’s contact
using the addresses provided in the application.
To avoid unanticipated delays, vendors seeking a clearance certificate should
apply through the online system as early as practical in the sale process.
VALID CLEARANCE CERTIFICATE
A clearance certificate is valid for 12 months from the date of issue. It's
only valid for the listed vendor and clearance certificate period on the
certificate.
As long as the clearance certificate is provided by the vendor to the
purchaser during the time specified on it, and that this is before settlement
occurs, then it does not matter how long into the future the settlement may
be. The purchaser does not have to withhold.
All parties on the Certificate of Title will require a clearance certificate.
For example, joint tenants / tenants in common will need to fill out a form
each. It is the vendor’s responsibility to provide the purchaser with the
clearance certificate and ensure it's valid.
WHAT NAME SHOULD BE ON THE CLEARANCE CERTIFICATE
Vendors must ensure the details on their clearance certificate application
are accurate, so the clearance certificate issues in the correct name as that
shown on the Certificate of Title of the property.
For the purchaser to rely on the clearance certificate, we require the
following three conditions be met:
* The name of the vendor on the certificate must match the name on the
certificate of title – see Trusts and superannuation funds for further
clarification
* the date the certificate is given to the purchaser must be a date that
falls within the time period shown on the clearance certificate
* the clearance certificate must be provided to the purchaser before
settlement.
We will issue a clearance certificate in the name that is in our system. This
may mean the name of the vendor on the clearance certificate doesn't match
the name of the vendor on the certificate of title. In these cases:
* we accept the purchaser has fulfilled their obligation if the vendor
supplies the purchaser clearance certificate and proof of a name change
(for example, a marriage certificate issued from an Australian state or
territory registry)
* we accept that purchasers have fulfilled their obligation if they have
sighted a certificate where the First Name and Last Name are consistent
with the name on the title
* an honorific match is not required
* a correct address on a certificate is not required to fulfil the
purchaser's obligations
* it is not necessary to have the instrument number to a title deed on the
clearance certificate – for example 'Trustee under instrument ###'
* it is not necessary to have the details of the trust on the clearance
certificate – for example 'as Trustee for the XYZ Trust'. See Trusts and
superannuation funds for further clarification
* it is not necessary to have 'as executor for' or 'as legal representative
for' on a clearance certificate to fulfil the purchasers obligations
(where purchasing from a deceased estate). See Deceased estates for
further clarification.
Note: We will not reissue certificates in the above instances.
When a purchaser receives a clearance certificate from a vendor that is
valid, they can rely on it and not withhold. There is no need for the
purchaser to question the residency of the vendor.
If the clearance certificate doesn't meet the above conditions, the purchaser
is required to withhold 12.5% of the purchase price.
Although it's not necessary for the purchaser to check the validity of
clearance certificates with us before deciding to withhold the 12.5% amount
from the purchase price, they could decide to do so.
You can phone us on 13 28 66 (Fast Key Code 4 2) to check if the clearance
certificate is valid. You'll need to provide the following information:
* the number from the Our reference field at the top of the certificate
* the vendor’s name as it appears on the clearance certificate.
The call centre operative will then inform you whether the clearance
certificate is valid.
TRUSTS AND SUPERANNUATION FUNDS
The instructions for the capital gains withholding clearance certificate
application provide specific details about how the form should be completed.
For trusts and superannuation funds, it is the entity that has legal title to
the asset that applies for the clearance certificate. In most cases this is
the trustee. It is the trustee – in their own capacity as either a company or
an individual – that should apply for the clearance certificate.
The trustee needs to use their own tax file number (TFN) and/or Australian
business number (ABN) as the identifier (if they have one). It is recommended
to include the Australian Company Number (ACN) as an attachment if they have
one.
Note: If a corporate trustee does not have a TFN, include an attachment in
the application which provides the details of the relevant trust.
The certificate will be issued in the name as it appears on our system. We
accept the purchaser has fulfilled their obligation if the vendor can show
that the entity on the clearance certificate is the trustee of the trust (for
example, copy of the trust deed).
This may be needed where our system contains 'The trustee for ABC Trust'
whereas the title contains 'XYZ as the trustee for ABC Trust', or it has the
trustee name only on the clearance certificate.
CONSOLIDATED GROUPS AND MULTIPLE ENTRY GROUPS
WITHHOLDING AND INTRA-GROUP TRANSACTIONS
A member of a consolidated group or multiple entry groups that purchases from
another member of the group an asset to which the withholding applies is
still required to comply with the withholding obligation.
ENTITY OBTAINING THE CLEARANCE CERTIFICATE
We'll issue a clearance certificate to the head company or provisional head
company of the group which includes the members of the group as an
attachment.
We rely upon the group membership information as recorded on our systems. If
group membership has changed, it's up to the head company to notify us of
these changes before making a clearance certificate request.
Alternatively, subsidiary entities can, in their own right, apply for a
clearance certificate and have one issued in their own name.
THE CONTRACT IS FOR LONGER THAN 12 MONTHS
There may be instances where the settlement date is after the expiry date on
the vendor’s clearance certificate. For example, where an off-the-plan
apartment is acquired and the contract period is greater than 12 months.
The purchaser may rely on the clearance certificate being valid as long as
the date it's made available to the purchaser, is within the clearance
certificate period stated on the certificate.
DO THE RULES APPLY IF THE MARKET VALUE OF THE ASSET ACQUIRED IS EXACTLY
$750,000?
Yes, the transaction will only be excluded from the rules if the market value
of the taxable Australian real property or company title interest acquired is
less than $750,000.
ESTIMATED MARKET VALUE $750,000 OR ABOVE
If the vendor is uncertain whether the $750,000 threshold will be reached
(for example, because the property is going to auction or a sales contract is
yet to be signed) the vendor may wish to be conservative and apply for a
clearance certificate. If the property is then sold for less than $750,000,
the vendor doesn't need to provide the purchaser with the clearance
certificate.
SELLING PROPERTY WITH MULTIPLE TITLES
Where each parcel of real property sold is subject to a separate title, each
is considered a separate CGT asset.
Example – separate CGT assets
Bob owns a small farm which consists of three separately titled blocks, each
valued at $700,000 by an independent valuer, but they are not able to be sold
separately under the farm's land planning permit. As a separate asset, all
three titles would come within the exclusion of subsection 14-215(1) of the
Income Tax Assessment Act 1997 as each has a market value less than $750,000.
This is the case regardless of whether there are one or multiple contracts
involved for the sale of the three titles.
Any restrictions imposed by planning permits on the titles do not change the
fact that each parcel of real property is on a separate title, hence
recognised as a separate asset.
End of example
WHEN WE WITHDRAW A CLEARANCE CERTIFICATE ONCE IT HAS BEEN ISSUED
We may withdraw a clearance certificate at any time if we obtain further
information indicating that the vendor is a foreign resident.
This is to ensure that the vendor is not able to use the clearance
certificate where we determine they have no entitlement to it.
We would expect that the withdrawal of a clearance certificate, once issued,
would only occur in very rare situations given the checks and processes that
have been put in place when issuing them.
Where a purchaser has, in good faith, not withheld from the purchase price on
the basis of being provided with a clearance certificate prior to settlement,
the purchaser will have met their obligations under the withholding rules.
Any subsequent decision by us to withdraw the clearance certificate from the
vendor doesn't alter the fact that the purchaser had correctly complied with
the withholding provisions at the time of settlement.
The purchaser will not be subject to any interest or penalty for failure to
withhold in these circumstances, as at no stage was the purchaser required to
withhold, given the vendor had produced a clearance certificate prior to
settlement.
WHEN THE VENDOR PROVIDES A FRAUDULENT CLEARANCE CERTIFICATE
If a purchaser receives a document that appears to be a genuine and valid
clearance certificate, and in good faith relies on that document to not
withhold, we will not pursue the purchaser for the withholding.
If the document is subsequently found to be fraudulent, we will hold the
vendor liable for making a false and misleading statement and may prosecute
them.
DECEASED ESTATES
We have set out in a legislative instrument that no withholding (and hence no
clearance certificate) is required in the following circumstances:
* a beneficiary acquires ownership of the relevant asset under the deceased
individual’s will, by operation of an intestacy law etc. For example, the
name on the title deed is Joe Smith who is executor for Mary Smith estate
* a beneficiary acquires ownership of the relevant asset from the legal
personal representative (executor/trustee) of the deceased individual in a
manner not described above
* the property devolves to the legal personal representative
(executor/trustee) following the death of the individual
* a surviving joint tenant acquires the deceased joint tenant’s interest in
a CGT asset. Where the title deed is under the surviving joint tenant's
name only, a clearance certificate is required.
The operation of the Instrument extends to circumstances where assets pass to
beneficiaries of a testamentary trust. For more information, see PAYG
Withholding variation for foreign resident capital gains withholding payments
– deceased estates and legal personal representativesExternal Link.
Any other transfer or disposal of the relevant asset by the legal personal
representative will create a withholding obligation. For example, the legal
personal representative (executor/trustee) may decide to transfer or dispose
of the relevant assets to a third party.
SITUATIONS INVOLVING MORTGAGORS AND MORTGAGEES
This concerns situations where a mortgagor (borrower) has borrowed funds from
a mortgagee (creditor, for example a bank), that mortgagor is unable to repay
the loan and the mortgagee requires them to sell the secured asset which is
subject to withholding (referred to as property in this section).
There are three situations where this commonly applies:
* Situation 1 – the mortgagor retains title to the sale as the mortgagee has
not repossessed the title to the property but has ordered its sale.
* Situation 2 – where the mortgagee does take possession of the property and
sells in that capacity, but there is no transfer of title from mortgagor
to mortgagee.
* Situation 3 – the mortgagee has repossessed and taken title to the
property from the mortgagor. This is commonly known as a foreclosure. In
this situation there are two transactions where foreign resident capital
gains withholding may apply
* the transaction concerning the transfer of title from the mortgagor to
the mortgagee (generally deemed to be a sale of the property at market
value)
* the transaction concerning the transfer of title from the mortgagee to
the ultimate purchaser.
APPLYING FOR THE CLEARANCE CERTIFICATE OR VENDOR VARIATION
The entity with the title to the property is required to obtain the clearance
certificate so foreign resident capital gains withholding won't apply.
In situation 1, the mortgagor remains the legal owner of the property.
Therefore it is the mortgagor who has to obtain the clearance certificate and
ensure it is provided to the ultimate purchaser for foreign resident capital
gains withholding not to apply.
In the event the mortgagor doesn't cooperate with the mortgagee, then the
mortgagee, as a creditor, can apply for a foreign resident capital gains
variation to have the withholding reduced to the extent that the amount it is
owed would not be covered by the sale proceeds if an amount was withheld.
In situation 2, the mortgagee cannot obtain a clearance certificate as they
are not the legal owner of the property. However, the mortgagee can apply for
a foreign resident capital gains variation to have the withholding reduced to
the extent that the amount it is owed would not be covered by the sale
proceeds if an amount was withheld.
There is no specific requirement as to who physically provides the clearance
certificate to the purchaser. Therefore, with both situation 1 and 2, if the
mortgagor, as vendor, obtains the clearance certificate, then provides it to
the mortgagee, and the mortgagee provides it to the purchaser the ultimate
purchaser can verify that the clearance certificate issued to the vendor is
valid so long as it matches the name on the certificate of title.
In situation 3, for foreign resident capital gains withholding not to apply,
clearance certificates are required to be provided to the purchasers for both
transactions, that is:
* repossession by the mortgagee from the mortgagor. The mortgagor, as the
vendor, is the party that has title of the property and therefore would
obtain the clearance certificate. As in situation 1, if the mortgagor
doesn't co-operate in this regard, the mortgagee, as a creditor, can apply
for a foreign resident capital gains variation
* sale of the property by the mortgagee to the ultimate purchaser. As the
mortgagee has title to the property it is mortgagee that would obtain the
clearance certificate.
For more information, see PAYG Withholding variation for foreign resident
capital gains withholding payments - no residue after a mortgagee exercises a
power of sale 2020External Link.
WHEN THE PURCHASER SHOULD WITHHOLD
For the purpose of this part it is assumed that the entity taken to be the
vendor is not entitled to a clearance certificate and therefore foreign
resident capital gains withholding applies.
In situation 1, the mortgagor remains the legal owner of the property.
Therefore, if the mortgagor doesn't have a clearance certificate, the
mortgagee is required to withhold. If either the mortgagor, as vendor, or the
mortgagee, as creditor, have applied and been granted a foreign resident
capital gains withholding variation, the reduced rate of withholding
specified in the variation notice applies.
In situation 2, the purchaser of the property would need to withhold at the
12.5% rate unless the mortgagee has obtained a foreign resident capital gains
variation to have the withholding reduced to the extent that the amount it is
owed would not be covered by the sale proceeds if an amount was withheld.
Where a variation has been obtained by the mortgagee, the purchaser withholds
at the rate specified in the variation notice provided by us to the
mortgagee.
For situation 3, both transactions have to be considered:
* repossession by the mortgagee from the mortgagor – foreign resident
capital gains withholding applies to this transaction with the mortgagee
(creditor) having to withhold the 12.5% foreign resident capital gains
withholding unless either the mortgagor, as vendor, or the mortgagee, as
creditor, have applied and been granted a foreign resident capital gains
withholding variation.
* sale of the property by the mortgagee to the ultimate purchaser – foreign
resident capital gains withholding would apply. Therefore, unless the
mortgagee has obtained a foreign resident capital gains withholding
variation, the ultimate purchaser is required to withhold at a rate of
12.5%.
EXCEPTIONS
There may be a situation where the mortgagee’s name is not on the title as
registered proprietor (although the mortgage will be listed as an interest on
that title). This is because the mortgagee has not repossessed the property.
However, the contract of sale will show the vendor as a mortgagee in
possession exercising a power of sale under the mortgage.
With respect to paying the foreign resident capital gain's withholding, the
name of the vendor on the purchaser payment notification form must be the
mortgagor (borrower) as the mortgagee (creditor) has never taken title to the
asset. This ensures that the foreign resident capital gains withholding
credit that arises correctly goes to the borrower which is also the entity
that is required to declare the capital gain.
THE COMPANY IS INSOLVENT OR UNDER EXTERNAL ADMINISTRATION
If the entity from which the asset is acquired is a company that satisfies
any of the conditions in paragraph 161A(1)(a) of the Corporations Act 2001
the transaction is excluded. The purchaser will not have a withholding
obligation. This exclusion applies broadly; it is not limited to transactions
involving assets for which there is a receiver.
Although there is no need to provide a clearance certificate to the purchaser
in this instance, the purchaser may want to see evidence from the company or
mortgagee that the exclusion applies to support their decision not to
withhold.
ON SALE OF PROPERTY WITH NO IMMEDIATE TRANSFER OF TITLE
A vendor may dispose of a property subject to the withholding regime before
they have taken ownership of it. This is also known as an 'on-sale'.
Company A signs a contract to sell a property for more than $750,000 to
company B. At this time company B has not taken ownership of the property
from company A. The legal ownership of the property remains with company A.
Company B’s name is not recorded against the property at the Land Titles
Office. Prior to the settlement with company A, company B enters a contract
with company C for disposal of the property. As a result of this contract
company C agrees to acquire the property and undertake the settlement with
company A.
The clearance certificate is required from company A to company C.
RELATIONSHIP BREAKDOWN
There is no need for a clearance certificate in these circumstances as long
as:
* the transfer happens under the Family Law Act 1975 or under a State law,
Territory law or foreign law relating to breakdowns of relationships
between spouses
* the transferee possesses a copy of the relevant documentation specified in
subsection 126-5(1) of the Income Tax Assessment Act 1997 (ITAA 1997) by
the time of the finalisation of the transfer, showing that the asset was
acquired in accordance with subparagraph 3(i).
For more information, see PAYG Withholding variation for foreign resident
capital gains withholding payments – marriage or relationship
breakdownsExternal Link
INCOME TAX EXEMPT ENTITIES
There is no need for the entity to provide a clearance certificate where the
entity provides the purchaser with evidence that they are an income tax
exempt entity. This should either be:
* a private binding ruling confirming its income tax exemption valid for the
year in which the transaction is occurring
* documentation showing that the entity is endorsed for income tax exemption
as a registered charity under item 1.1 of section 50-5 of the ITAA 1997.
For more information, see PAYG Withholding variation for foreign resident
capital gains withholding payments – income tax exempt entitiesExternal Link
GOVERNMENT AUTHORITIES AND NOT-FOR-PROFIT ORGANISATIONS
The withholding applies to all transfers of property unless they are
specifically exempted.
Government authorities and not-for-profit organisations are not specifically
exempted from the withholding and must obtain a clearance certificate or
apply for a variation otherwise the foreign resident capital gains
withholding will apply.
VENDOR DECLARATIONS
For all other asset types subject to foreign resident capital gains
withholding, the vendor may provide the purchaser with a vendor’s declaration
to specify withholding isn't required on the acquisition of the asset. There
are two types of vendor declarations:
* residency declaration
* not an indirect Australian real property interest declaration.
TRUSTS AND SUPERANNUATION FUNDS
The trustee of a trust or superannuation fund completes the vendor
application in their own capacity as either a company or an individual if the
following apply:
* they are the entity that has legal title to the asset
* there is no mention of the trust or fund or 'in holding the property on
trust'.
RESIDENCY DECLARATION FOR TRANSACTIONS THAT ARE NOT REAL PROPERTY
Where the purchaser believes the vendor is a foreign resident, they can
request the vendor make a declaration confirming their Australian tax
residency.
Purchasers may believe the vendor is a foreign resident if either:
* they know the vendor has an address outside of Australia
* sale proceeds are to be paid to a place outside of Australia.
When a vendor makes a declaration stating they are an Australian tax
resident, the purchaser will not treat them as a foreign resident.
Alternatively, the vendor may voluntarily provide a declaration to the
purchaser without being asked to supply it.
PURCHASER CAN RELY ON THE DECLARATION
The purchaser may rely on a residency declaration supplied by the vendor,
where the purchaser is acquiring assets that are not Australian real
property. When a purchaser receives a vendor declaration, they will not
withhold any amounts unless they know the declaration is false.
NOT AN INDIRECT AUSTRALIAN REAL PROPERTY INTEREST DECLARATION
A vendor may provide the purchaser with a declaration confirming either:
* that the membership interests they are disposing of are not indirect
Australian real property interests
* where an option is granted, that the membership interests subject to the
option are not indirect Australian real property interests.
This is allowed, as the vendor would be in the best position to determine if
the membership interest being disposed of, or subject to an option, is an
indirect Australian real property interest.
PURCHASER CAN RELY ON THE DECLARATION
A ‘Not an indirect Australian real property interest’ declaration supplied by
the vendor may be relied on by the purchaser where the purchaser is acquiring
the membership interests in an Australian entity or an option over the
membership interests specified in the declaration.
Where a valid declaration is provided there will be no obligation on the
purchaser of the membership interest, or grantee of the option transaction,
to withhold. A declaration may be relied on unless the recipient knows the
declaration is false.
INTERESTS ON THE STOCK MARKET
Where a vendor is disposing of the interest in the Australian entity on an
approved stock exchange (such as the ASX or Chi-X), there is no need for the
declaration to be provided. This is because interests disposed of on an
approved stock exchange are an ‘excluded asset’ for the purposes of this
withholding.
This also applies to transactions that occur on a crossing system – for
example, disposal of shares in dark pools.
WHEN THE VENDOR DOESN'T SUPPLY A DECLARATION WHEN REQUESTED
If the vendor doesn't supply a declaration when requested, the purchaser
should withhold 12.5% from the purchase price at settlement.
VALID DECLARATION FROM A VENDOR
A vendor’s declaration is valid for six months from the date it's signed by
the vendor. It's only valid for the listed vendor and specified period on the
declaration. The specified period may start retrospectively but cannot exceed
six months from the date the declaration is signed by the vendor.
It's the vendor’s responsibility to provide the purchaser with a declaration
and ensure the date that it was provided to the purchaser is within the
six-month validity period of the declaration.
For the purchaser to rely on the declaration, the:
* name of the vendor on the declaration must match the name of the owner of
the asset (unless proof of name change is provided)
* date the vendor provides the declaration to the purchaser must be a date
that falls within the specified period on the declaration.
If the declaration doesn't meet the above conditions, the purchaser is
required to withhold 12.5% of the purchase price.
HOW TO DECLARE
There is no approved form that can be completed by the vendor for a
declaration. But we have a template that can be used for this purpose.
Next step
* Download Foreign resident capital gains withholding – vendor declaration
(PDF, 222KB)This link will download a file
MULTIPLE VENDORS
A declaration is only valid for the vendor specified in the declaration. If
an asset is acquired from multiple vendors, each vendor would need to provide
the purchaser with their own declaration, to ensure the withholding
obligation does not apply to each of them.
DECLARATIONS AND THE DISPOSAL OF REAL PROPERTY
A vendor can't use a declaration to avoid having the purchaser withhold the
12.5% withholding in relation to the disposal of real property.
FALSE VENDOR DECLARATIONS
A purchaser can rely upon the declaration unless they know it to be false.
A purchaser will be treated as knowing a vendor declaration is false where
they have specific knowledge of this fact. A purchaser will have such
knowledge when they are a party to the fraud committed by the vendor, or when
they have other information that indicates the declaration is implausible.
The fact the purchaser may have reasonable grounds to doubt the accuracy of
the declaration does not, of itself, and without further information, mean
the purchaser can't rely on it.
PENALTIES
A vendor that makes a false or misleading declaration must pay a penalty to
the Commissioner. The amount of the penalty varies depending on the severity
of the offence.
The penalty is:
* 120 penalty units where the vendor has knowingly made a false or
misleading declaration
* 80 penalty units where they have recklessly made a false or misleading
declaration
* 40 penalty units where the declaration is false or misleading as a result
of the vendor failing to take reasonable care.
VARIATIONS
Vendors can apply for a variation where:
* they're not entitled to a clearance certificate
* a vendor’s declaration is not appropriate
* 12.5% withholding is too high compared to the actual Australian tax
liability on the sale of the asset.
Reasons for a variation include:
* the vendor will not make a capital gain on the transaction (for example,
because they will make a capital loss or a CGT roll-over applies)
* the vendor will not have an income tax liability (for example, because of
carried-forward capital losses or tax losses)
* a creditor of the vendor has a mortgage or other security interest over
the property, and the proceeds of sale available at settlement are
insufficient to cover both the amount to be withheld and to discharge the
debt the property secures
* a creditor acquires legal title to the property (that is, becomes the
purchaser) as a result of an order for foreclosure, and its security would
be further diminished as a result of having to comply with the withholding
obligation.
FOREIGN RESIDENTS CLAIMING THE MAIN RESIDENCE EXEMPTION AS A REASON FOR THE
VARIATION
A law change on 12 December 2019 means foreign residents can no longer claim
the CGT main residence exemption as the reason for their variation unless, at
the time of the CGT event, they were a foreign resident continuously for six
years or less and during that time one of the following occurred:
* either the foreign resident, their spouse, or their child under 18, had a
terminal medical condition
* their spouse, or their child who was under 18 years of age, dies
* the CGT event happened because of a formal agreement following your
divorce or relationship breakdown.
If the foreign resident dies, the change also applies to:
* legal representatives, trustees and beneficiaries of deceased estates
* surviving joint tenants
* special disability trusts
WHEN THE CHANGE APPLIES
The change applies to foreign resident vendors for properties acquired at or
after 7:30 pm (AEST) 9 May 2017. The CGT main residence exemption no longer
applies to disposals from that date unless any of the life events (listed
above) occur within six continuous years of that individual becoming a
foreign resident for tax purposes.
The change only applies if the person is not an Australian resident for tax
purposes at the time of the disposal, that is, when the person signs the
contract to sell the property. Their residency status in earlier income years
will not be relevant. There will be no partial CGT main residence exemption
available in these circumstances.
If a person has always been a foreign resident for tax purposes, it is
unlikely they have ever resided in the property as their main residence and
are unlikely to meet the requirements for the CGT main residence exemption.
LEGISLATIVE INSTRUMENTS
We have issued class variations for:
* deceased estates and legal personal representativesExternal Link
* income tax exempt entitiesExternal Link
* marriage or relationship breakdownsExternal Link
* no residue after a mortgagee exercises a power of saleExternal Link
If any of these class variations apply, the withholding rate is varied to nil
and it is not necessary to apply for a variation.
HOW TO APPLY
To apply for a variation, the vendor, the vendor’s representative or vendor’s
creditor needs to complete the online Variation application for foreign
residents and other partiesThis link opens in a new window.
An application for a variation should be completed well in advance of the
settlement date to ensure there is enough time to provide the information
required to finalise the application.
Conveyancers, real estate agents and others charging a fee for services (but
who are not legal practitioners or registered tax agents) should obtain a
completed paper PDF version of the form from the vendor. They can then use
the details on the paper form to complete the online form, ensuring faster
processing, as part of the settlement process.
Next step
* Complete the Foreign resident capital gains withholding rate variation
paper application
For more information, see LCR 2016/5 Foreign resident capital gains
withholding regime: the Commissioner's variation power
In the majority of cases (where we have all the required information), the
variation notice will be issued within 28 days.
Variation notices will be sent by email if an email address is provided in
the application. Otherwise, notices will be mailed to the vendor and the
applicant using the addresses provided in the application. The variation
notice should be shown to the purchaser before settlement to ensure the
reduced withholding rate applies.
CALCULATING THE REDUCED RATE OF WITHHOLDING
Vendors need to calculate their reduced rate of withholding. This could be a
rate between nil and 12.49%.
The varied rate we approve will depend on the information provided by the
vendor in their application.
UNIT PRICE FLUCTUATIONS
If the indirect interest in taxable Australian real property is in a
wholesale trust that has unit values that fluctuate daily, then there is a
risk that the variation would become invalid as the unit selling price
exceeds the unit price specified in the conditions of the variation notice we
issued.
As a solution to this potential problem, the variation condition we provide
on the variation notice can provide a number of alternative prices, with a
differing variation rate applying to each. If you are in this situation you
should provide information in relation to possible price differences and what
you believe would be an appropriate variation rate within that price range –
this information can be supplied in the attachment to the variation
application.
MULTIPLE VENDORS
A variation notice applies to the specified vendor and applicable asset on
the notice. If an asset is acquired from multiple vendors, each vendor will
need to supply the purchasers with separate variation notices if a reduced
rate of withholding is to apply.
For more information, see PAYG Withholding variation for foreign resident
capital gains withholding payments – acquisitions from multiple
entitiesExternal Link
VALID VARIATION NOTICE
A variation notice is valid up to and including the expiry date on the notice
for the listed vendor and applicable asset on the notice.
It is the vendor’s responsibility to provide the purchaser with the variation
notice and ensure it's valid at the time of settlement.
For the purchaser to rely on the variation notice, the:
* name of the vendor and applicable asset details on the notice must match
those on the certificate of title or other asset ownership documentation
(proof of name change should have been provided to us at the time of
applying as all variations are manually processed)
* the settlement date must be on or before the expiry date on the variation
notice.
When a purchaser receives a valid variation notice from a vendor, they can
rely on it and withhold amounts from payments at the reduced rate and pay by
completing the Foreign Resident Capital Gains Withholding Purchaser Payment
Notification form.
If the variation notice doesn't meet the above conditions, the purchaser is
required to withhold 12.5% of the purchase price.
A purchaser can check the validity of a variation notice with us by phoning
13 28 66 (Fast Key Code 4 2) prior to deciding whether to withhold the 12.5%
amount from the purchase price. To confirm the validity, the purchaser must
provide the:
* BET number from the ‘Our reference’ field at the top of the notice
* vendor’s name, varied rate and applicable asset details as they appear on
the notice.
CALCULATING THE WITHHOLDING
PURCHASE PRICE VS MARKET VALUE
With taxable Australian real property, the market value determines whether
this withholding measure needs to be considered.
In most cases, the market value of a property should be the same as the
purchase price. Where the purchase price has been negotiated between the
vendor and the purchaser, acting at arm’s length, we will accept the purchase
price as a proxy for market value.
However, there could be circumstances where the market value is different to
the stated purchase price (for example, where the vendor and purchaser are
related parties and did not deal with each other at arm’s length). In such
cases, we won't accept the purchase price as a proxy for market value and the
purchaser will need to seek a separate expert evaluation.
PURCHASE PRICE VS FIRST ELEMENT OF THE COST BASE
The legislation provides that the purchaser applies the 12.5% withholding
rate to the first element of the cost base of the asset the vendor is
disposing of.
The first element of the cost base is a tax technical term, which is the
money paid, or required to be paid, to acquire the asset and the market value
of any property given, or required to be given, in respect of acquiring the
asset.
In most cases, the first element of the cost base should be equivalent to the
purchase price. Where the purchase price has been negotiated between the
vendor and the purchaser, acting at arm’s length, we will accept the purchase
price as a proxy for the first element of the cost base.
Where a sales contract contains assets both subject to this withholding
measure and not subject to this withholding measure, the purchaser and vendor
can decide to come to an agreement as to what are the respective market
values of each asset, in determining whether withholding should be imposed
upon that share of the purchase price for each asset. Where the parties to
the contract are not dealing at arm's length an independent valuer may need
to be included in the valuation process.
MULTIPLE PROPERTIES IN ONE TRANSACTION
A vendor may be disposing of multiple properties in one transaction, the
combined value of which exceeds $750,000. The withholding is based on the
market value of a property being disposed of not a combination of all the
properties being disposed of, therefore each property needs to be assessed
separately for withholding
NO ADDITIONAL PAYMENT ON TOP OF THE AGREED PURCHASE PRICE
The obligation for the purchaser to withhold an amount and pay it to us isn't
an additional payment on top of the agreed purchase price.
The withholding amount is taken from the purchase price the purchaser has
agreed to pay the vendor.
HOW WITHHOLDING APPLIES TO DEPOSITS OR INSTALMENTS
Withholding is not required from deposits paid on signing of the contract.
If payments are to be made in multiple instalments across the contract
period, withholding should only occur when the final payment is made at
settlement. The withholding amount is still calculated using the full
purchase price of the asset.
WHEN THE CONTRACT DOESN’T SETTLE
If for some reason the contract is not completed (settled), there is no
obligation on the purchaser to withhold. This is because the vendor has not
received the agreed purchase price for the asset.
MULTIPLE PURCHASERS (THE ATO ONLINE FORM WILL HELP IN THIS CALCULATION)
Where there are multiple purchasers, each purchaser doesn't look at their
percentage interest in isolation to the other purchasers in determining
whether they should withhold.
Each purchaser must withhold in proportion to their percentage of the total
purchase price.
Where the asset being disposed of is taxable Australian real property, the
market value of all purchasers' interests must be aggregated in examining
whether the $750,000 market value threshold has been reached.
If the aggregated purchase price is $750,000 or more, each purchaser must
withhold in proportion to their percentage of the total purchase price.
Example – Multiple purchasers
You are purchasing a commercial property jointly with another entity. Your
share of the acquisition is 40%, for which you are paying $400,000. This
means the total property purchase price would be $1 million. Even though your
purchaser’s interest is below the $750,000 threshold, the property as a whole
exceeds the $750,000 threshold so you will need to withhold.
Each purchaser will receive a different payment reference number, and a
specified amount / rate to be paid via the online form. You may provide one
cheque together with the details on how to apportion this amount.
End of example
MULTIPLE VENDORS (THE ATO ONLINE FORM WILL HELP IN THIS CALCULATION)
If there are multiple vendors disposing of the asset, it's the total market
value of the asset that determines whether withholding is required by the
purchaser.
If the purchaser hasn't been provided with a clearance certificate, vendor
declaration or a variation from any of the vendors, the purchaser must
withhold 12.5% of the purchase price. The amount of withholding will be in
proportion to each vendor’s interest in the asset.
Where there are multiple Australian vendors disposing of the asset, each
vendor should provide the purchaser with a separate clearance certificate
which is to be in their name only.
Where one (but not all) of the vendors provides a clearance certificate or
vendor declaration to the purchaser, the withholding obligation still
applies, as there is still a foreign resident vendor to the transaction. The
amount of withholding is still on the entire first element of the cost base
of the asset, not just the portion attributable to the relevant foreign
resident vendor’s interest in the asset.
We recognise in this situation, any vendors subject to the withholding would
apply for a variation to ensure the withholding amount better reflected the
foreign resident vendor’s tax liability. They would receive a reduction in
the withholding rate accordingly.
To reduce the need for vendors to apply for variations in these situations,
the purchaser may withhold in accordance with each vendor’s proportional
interest in the purchase price, subject to any clearance certificate, vendor
declaration or vendor variation being provided prior to settlement.
For more information, see PAYG Withholding variation for foreign resident
capital gains withholding payments – acquisitions from multiple
entitiesExternal Link
The following examples are from the perspective of a purchaser determining
their obligation to withhold. In all instances, it's assumed the purchase
price is $750,000 or more.
Example – Joint owners, but only one vendor is an Australian resident
The purchaser has to withhold as there is a foreign resident. The withholding
is based on the full purchase price of the property. The purchaser would need
to see the clearance certificate from the Australian resident vendor.
Otherwise, they would have to withhold on their interest within the property
they are disposing of.
If a clearance certificate is provided before settlement, then the purchaser
doesn't have to withhold. The withholding would be on the full purchase price
of the property – but we allow the withholding to be calculated only on the
foreign resident’s interest in the property.
End of example
Example – Foreign resident vendor provides a variation
The circumstances are identical, but now the foreign resident vendor shows a
variation notice and the Australian vendor provides a clearance certificate.
There is no withholding on the Australian resident’s interest in the
property. There is withholding on the foreign resident’s interest in the
purchase price of the property – but the rate of withholding is the
withholding rate as specified on the variation notice issued by us to the
foreign resident vendor, not 12.5%.
End of example
Example – Multiple foreign resident vendors
As the property is being sold by foreign residents, the purchaser knows they
must withhold. They have not received a clearance certificate, so must assume
all the vendors are foreign residents.
With respect to each foreign resident vendor, the amount of withholding is
based on their specific interest in the property – their share of the
purchase price.
The purchaser must consider if any of these vendors has supplied a variation
notice. If no variation notice is received, the withholding is 12.5% of the
contract purchase price, with each vendor being subject to an amount
reflective of their interest in the property being sold.
If variation notices are provided by some or all of the foreign resident
vendors, the purchaser must calculate the specific withholding rate
applicable to each vendor.
For vendors that don't supply a variation notice, the withholding is 12.5% of
their share of the contract purchase price, reflective of their interest in
the property being sold.
For vendors that supply a variation notice, the rate of withholding
applicable to their specific interest in the purchase price of the property
will be the withholding rate as specified on the variation notice issued by
us to that particular foreign resident vendor. It may be the purchaser has to
withhold 8% from one vendor, and 3% from another vendor.
End of example
WHEN THE PURCHASER FAILS TO WITHHOLD
If the purchaser fails to withhold when they should, a penalty may be imposed
by the Commissioner, equal to the amount that was required to be withheld and
paid. General interest charges will also be applied.
GOODS AND SERVICES TAX
For some transactions, it may be necessary to determine if the purchase price
needs to be adjusted for GST in determining the price on which the
withholding is applied.
Where a purchaser isn't registered for GST or the supply of the asset isn't a
taxable supply (for example because the vendor isn't registered for GST or
the supply is input taxed), or the purchaser isn't entitled to any input tax
credit, the GST inclusive purchase price payable by the purchaser may be used
in determining how much withholding is required.
Where the purchaser is registered for GST and the transaction is a taxable
supply*, and the purchaser is entitled to an input tax credit, the GST
inclusive purchase price less the input tax credit may be used by the
purchaser in determining how much withholding is required.
The purchase price can't be used as a proxy for market value if the purchaser
has paid a premium, or the parties have not dealt with each other at arm’s
length.
* The sale of existing residential premises (but not commercial residential
premises or new residential premises) is input taxed and therefore not a
taxable supply. Where the asset is shares (for example company title
interests), the supply of shares is input taxed and therefore not a taxable
supply.
AN EXCEPTION – THE MARGIN SCHEME
If the margin scheme is used, a purchaser cannot claim input tax credits on
that acquisition, even if they are registered for GST and intend to use the
purchased property for a creditable purpose.
In these instances, a GST registered purchaser should calculate the 12.5%
withholding by using the GST inclusive price, the same as non-registered
purchasers.
LEASES
ACQUISITION OF A LEASE
The acquisition of a lease with a market value of $750,000 or more from a
foreign resident lessor would be subject to the 12.5% withholding.
WITHHOLD AMOUNT IF PAYING A PREMIUM FOR THE LEASE
Withholding is only required if the market value of the lease is $750,000
or more. If a lessee has paid a premium for a lease, that premium is part of
the first element of the cost base of the leased asset upon which the 12.5%
withholding applies.
RENT AND OUTGOINGS
Rent and outgoings are not included in determining the $750,000 market value
and do not form part of the first element of the cost base, of a lease.
OPTIONS
The acquisition of an option to acquire an asset subject to this withholding
measure from a foreign resident would be subject to the 12.5% withholding
unless the vendor provides the purchaser with a valid declaration or another
exception or exclusion applies. However, where the market value of the option
being acquired is less than $8 no withholding applies and no Purchaser
payment notification form is required to be submitted by the purchaser.
Where the option involved is a put option, the grantee is not required to
withhold an amount because the grantee of a put option has acquired a right
to sell, not an option to acquire, the underlying asset.
Where a purchaser acquires the asset as a result of exercising an option, the
amount to which the 12.5% withholding applies is the amount paid for the
asset and the market value of any property they gave for the option (or to
renew or extend the option), but excluding what the purchaser already paid
for the option.
WHEN AN OPTION CONTRACT IS ENTERED BEFORE 1 JULY 2016 BUT EXERCISED AFTER
THAT DATE
When the option was granted has no bearing on the foreign resident capital
gains withholding implications. It is the time of exercise of the option that
is the relevant point at which the grantee must consider whether the foreign
resident capital gains withholding provisions apply to the amount they are
paying the grantor.
Where the option is exercised on or after 1 July 2016 and the asset being
acquired is a CGT asset subject to the withholding rules, then the
withholding provisions do apply to the first element of the cost base of that
relevant asset (we accept this is the purchase price of the asset where there
is an arm’s length transaction). This is the case even when the option was
granted prior to 1 July 2016 or where the option contract doesn't consider
foreign resident capital gains withholding.
The withholding is avoided if the vendor provides the purchaser with a valid
clearance certificate or declaration, or another exception or exclusion
applies.
A purchaser that withheld in accordance with their federal income tax
obligations would be protected by sub-section 16-20(2) of Schedule 1 to the
Taxation Administration Act 1953. This provides that a purchaser's liability
to pay the purchase price is reduced by the withholding amount paid to the
Commissioner.
EARNOUTS
How the rules apply will depend on whether the earnout right is one of the
following.
LOOK-THROUGH STANDARD EARNOUT RIGHTS
The purchaser is required to withhold and pay to the Commissioner 12.5% of
the first element of the CGT asset’s cost base just after the acquisition.
The first element of the CGT asset’s cost base doesn't include any financial
benefit the purchaser provides under a look-through standard earnout right
relating to the CGT asset.
The purchaser is also required to withhold and pay to the Commissioner 12.5%
of the market value of the financial benefits provided by the purchaser under
the earnout right, unless the entity receiving the financial benefit is not a
relevant foreign resident at the time the financial benefit is provided.
NON-LOOK-THROUGH STANDARD EARNOUT RIGHT
The purchaser is required to withhold and pay to the Commissioner 12.5% of
the first element of the CGT asset’s cost base. The non-look-through earnout
right is property given by the purchaser in respect of acquiring the CGT
asset. Therefore, the first element of the CGT asset’s cost base includes the
market value of the earnout right. The purchaser must ascertain the market
value of the earnout right at the time of acquisition and include that value
in calculating the 12.5% withholding.
The purchaser is not required to withhold 12.5% of the market value of any
financial benefits provided by the purchaser under the non-look-through
earnout right.
LOOK-THROUGH REVERSE EARNOUT RIGHT
The purchaser is required to withhold and pay to the Commissioner 12.5% of
the first element of the CGT asset’s cost base just after the acquisition.
The first element of the CGT asset’s cost base is not reduced by the amount
of any financial benefit that you receive under a look-through earnout right
relating to the CGT asset.
NON-LOOK-THROUGH REVERSE EARNOUT RIGHT
The purchaser is required to withhold and pay to the Commissioner 12.5% of
the first element of the CGT asset’s cost base. However, the purchaser has
acquired more than one asset. The non-look-through earnout right is a
separate CGT asset acquired by the purchaser and not subject to the
withholding. Therefore, the first element of the cost base of the CGT asset
that is subject to withholding is the amount of the purchase price that is
reasonably attributable to that CGT asset.
EARNOUT RIGHTS DO NOT AFFECT THE MARKET VALUE OF THE UNDERLYING ASSET
An earnout arrangement may be entered into at the time of sale of an asset
where the vendor and purchaser do not agree on a fixed purchase price.
However, the market value of an asset is not affected by the existence of an
earnout right that is created at the time of the asset’s sale.
THE PURCHASER CANNOT USE THE UPFRONT PAYMENT AS A PROXY FOR MARKET VALUE
Purchasers will need to ascertain the market value of the asset on a
different basis, such as seeking an independent expert valuation.
SHARE ISSUES / IPOS
The withholding obligation doesn't apply if the purchaser acquires shares as
a result of being issued or allotted those shares through an Initial Public
Offer (IPO) because the shares will not be indirect Australian real property
interests.
An indirect Australian real property interest is a membership interest (for
example, a share) held by one entity in another entity if certain additional
conditions are met.
At the time the share issue transaction is entered into, the shares are not
membership interests that the issuing company holds in another entity (they
are membership interests in the issuing company itself), and therefore cannot
be indirect Australian real property interests.
AN OPTION TO ACQUIRE SHARES
The acquisition of an option to be issued new shares in a company would not
be an option that is subject to the withholding on the basis that any shares
that could be acquired via the exercise of the option would not be an
indirect Australian real property interest.
PAYING THE WITHHOLDING
A purchaser must pay us the withholding equal to 12.5% of the first element
of the CGT asset’s cost base (the cost base is generally equal to the
purchase price). Where no money is paid or required to be paid, or the agreed
amount is under market value, then the 12.5% withholding is on the market
value of the CGT asset.
Note: The first element of cost base doesn't include any disbursements at
settlement (for example, for council rates, water and sewer charges and
strata levies). Therefore, the withholding amount is 12.5% of the purchase
price before adjustment for disbursements.
The purchaser is liable to withhold and pay this amount. If this does not
occur when it should, we will hold the purchaser liable.
WHEN THE PAYMENT IS REQUIRED
To pay the withholding to us, the purchaser must complete an online Foreign
resident capital gains withholding Purchaser Payment Notification formThis
link opens in a new window
Where there are multiple purchasers one form can be used if there are
10 or fewer purchasers, or purchasers can lodge a form individually.
Once a payment notification form is processed, a payment reference number
(PRN) will be issued, along with a PDF icon that can be clicked on to obtain
a downloadable payment slip and barcode to use at Australia Post.
Only one PRN is issued per purchaser payment notification form, even if
multiple purchasers are supplied on the form.
The purchaser (or purchasers) must pay the withholding to us on or before the
day they become the owner of the asset, and they require the PRN, payment
slip and barcode to do this. Without these, the purchaser will not be able to
make the payment at Australia Post.
We encourage purchasers to submit the payment notification form to us as
early as possible, to ensure they have the payment reference number at
settlement.
If the purchaser fails to obtain a PRN and pay the withholding when they
become the owner of the asset, general interest charges will be imposed.
There is a short grace period from, and including the day of settlement, for
the withholding to be paid in full. General interest charges will accrue from
the date of settlement if we don't receive the withholding within the grace
period.
All parties should view the Purchaser payment notification form before
settlement proceeds and should contact us if there are changes to the
settlement date on the form.
PURCHASER PAYMENT NOTIFICATION FORM
Purchasers are not required to notify us of a transaction if:
* the purchase price of the real property is less than $750,000
* all vendors have supplied clearance certificates
* all vendors have supplied vendor declarations
* all vendors provide a notice to vary withholding set at 0%.
When an amount is required to be withheld, a foreign resident capital gains
withholding purchaser payment notification form must be completed by all the
purchasers involved in the sale. The purchaser will need to provide the
details of the vendors and the asset in the application.
Once a payment notification form is processed, a PRN will be issued and a PDF
icon they can click to obtain a downloadable barcode to use at Australia Post
will be generated. It is recommended that the downloadable barcode always be
printed to avoid keying errors.
Only one PRN is issued per purchaser payment notification form, even if
multiple purchasers are supplied on the form.
The full payment can be made using the PRN or payment slip provided. Where
two or more purchasers are included in the transaction, they can choose to
make separate payments and use the same PRN or payment slip.
HOW TO PAY
There are three methods the purchaser can use to pay us.
1. Transfer the amount via electronic funds transfer (or BPAY®)
* Bank: Reserve Bank of Australia
BSB: 093 003
Account number: 316 385
Account name: ATO direct credit account
Reference: Your payment reference number
2. In person at Australia Post
* the purchaser will need the barcode supplied to them after lodgment of
the Foreign resident capital gains withholding purchaser payment
notification. The post office accepts cheques up to $100 million.
3. Mail a cheque to us with the PRN (Note: Large withholders may pay the
subdivision 14-D withholding amount by non-electronic means)
* Australian Taxation Office
Locked Bag 1936
ALBURY NSW 1936
Australia
AFTER PAYMENT HAS BEEN MADE
A receipt from either Australia Post or the ATO is proof the purchaser has
made the payment and fulfilled their obligations.
A payment confirmation email or letter will be sent to the nominated contact
on the purchaser payment notification form.
Confirmation will be sent by email if an email address is provided in the
foreign resident capital gains withholding purchaser payment notification,
otherwise it will be mailed to the address of the contact.
Vendors will need a copy of the payment confirmation and use this information
to complete their tax return.
HOW TO PAY WHEN TRAVELLING
We have an online version of the form, which provides an automatic PRN.
Only use this PDF form if you anticipate not having internet access:
* Foreign resident capital gains withholding purchaser payment notification
paper form instructions
COMPULSORY ACQUISITIONS BY GOVERNMENT AUTHORITIES
Certain Australian government authorities can exercise powers under State and
Territory legislation for the compulsory acquisition of real property.
Generally the property is acquired, and ownership of the property passes, on
the date that the acquisition is published in the relevant government
gazette.
In the context of a compulsory acquisition certain practical difficulties
arise in connection with determining whether or not there is an obligation to
withhold and working out the withholding amount to be paid on or before the
day the acquisition is published in the gazette. For example, the market
value of the property being acquired may be the subject of a dispute at the
time the acquisition is published.
PAYMENT OF WITHHOLDING TAX
Under section 14-200 of Schedule 1 to the Tax Administration Act 1953, the
Australian government authority is required to pay the foreign resident
capital gains withholding tax on or before the date that the authority became
the property’s owner.
DEFERRAL OF PAYMENT
Subsection 255-10(2A) of Schedule 1 of the Taxation Administration Act 1953
allows the Commissioner to defer the time for payment of tax-related
liabilities (including withholding tax) due and payable by a class of
taxpayers. The Commissioner defers the payment by publishing a notice on our
website. The Commissioner can defer the time for payment whether or not the
liability has already arisen.
NOTICE
Until further notice, the Commissioner of Taxation has deferred the time for
which the foreign resident capital gains withholding tax liabilities of an
Australian government authority are due and payable where:
The exercise of the compulsory acquisition power is authorised under one or
more of the following Acts:
* Acquisition of Land Act 1967 (Queensland)
* Land Acquisition (Just Terms Compensation) Act 1991 (New South Wales)
* Land Acquisition Act 1969 (South Australia)
* The Land Acquisition and Compensation Act 1986 (Victoria)
* Land Acquisition Act 1993 (Tasmania)
* Land Administration Act 1997 (Western Australia)
* Land Acquisition Act 1994 (Australian Capital Territory)
* Land Acquisition Act 1978 (Northern Territory)
* Land Acquisition Act 1989 (Commonwealth of Australia).
For an Australian government authority that is exercising its compulsory
acquisition powers under one or more of the above Acts in relation to a
compulsory acquisition, the due date for payment of the foreign resident
capital gains withholding tax is deferred to the earlier of:
* 14 days after agreement or final determination of the compensation payable
* 14 days after agreement to pay an advance amount of compensation.
As a consequence of this we will accept the government authority as meeting
its obligation for the purposes of the withholding if it receives a valid
clearance certificate from the vendor by the earlier of:
* 14 days after agreement or final determination of the compensation payable
* 14 days after agreement to pay an advance amount of compensation.
In terms of the amount of withholding it will be based upon the compensation
amount paid that is equivalent to the first element of the CGT asset cost
base (being that of the taxable Australian real property subject to the
gazettal).
As a compensation amount could include a value for disturbance and
professional expenses or other assets other than the property, the government
authority would need to establish a market value break-up of the payment
related to the property, and only withholding on that amount.
PENALTIES
A purchaser that fails to withhold as required and pay it to us may be
subject to a penalty equal to:
* $1,800 for contracts entered into on or after 1 July 2016 but before
1 July 2017
* $2,100 for contracts entered into on or after 1 July 2017
* the amount they failed to withhold.
We are obliged to give written notice to the purchaser of their liability to
pay the penalty and the reasons for imposing the penalty.
The purchaser will also be subject to the general interest charge on any
amounts not paid to us by the required date.
FOREIGN RESIDENT CAPITAL GAINS WITHHOLDING AND THE TAX RETURN
The foreign resident vendor must lodge a tax return at the end of the
financial year declaring:
* their Australian assessable income, including any capital gain from the
disposal of the asset
* whether the vendor will claim a credit for any withholding amount taken
from their sale proceeds (for example, because they didn't provide the
purchaser with a clearance certificate).
A credit may be refunded in the relevant tax return if they don't have to pay
capital gains tax on the sale of the property (for example, because it was
their main residence).
A foreign resident will need to apply for a TFN before they lodge an
Australian tax return to ensure they can claim a credit for the amount
withheld and paid to the ATO by the purchaser.
In certain circumstances, an early tax return may be submitted. If a foreign
resident vendor is not eligible to submit an early tax return, they must wait
until the end of the financial year to submit it and receive a tax credit for
the withholding paid by the purchaser.
APPLYING THE CREDIT
We will only apply the credit to the vendor when the:
* purchaser has paid the withholding to us
* vendor has lodged an Australian income tax return claiming the credit.
We'll give vendors confirmation that a withholding payment has been paid on
their behalf.
In situations where the contract is signed in one financial year but the
purchaser pays the withholding in the next financial year, we will apply the
Commissioner's Remedial Power to allow the vendor to claim the credit in the
same tax return in which they need to declare the capital gain.
For more information, see Taxation Administration (Remedial Power – Foreign
Resident Capital Gains Withholding) Determination 2017External Link
WHEN THE PURCHASER WITHHOLDS BUT DOESN'T PAY IT TO US
The vendor cannot claim a credit for the withholding until the purchaser pays
the withholding to us.
We will promptly take action to collect from the purchaser any withholding
amount not paid by the due date.
If the vendor is concerned the purchaser may not pay the withholding, the
vendor should seek legal advice.
AMENDMENTS
A vendor may provide the purchaser with a clearance certificate or variation
after the purchaser has submitted the purchaser payment notification.
Phone us on 13 28 66 (fast codes 4 2) for referral to the relevant area who
will try to help you resolve this situation.
MORE INFORMATION
LAW COMPANION RULINGS
The following rulings describe how we apply the law:
* Foreign resident capital gains withholding regime: the Commissioner's
variation power
* Foreign resident capital gains withholding regime: amount payable to the
Commissioner
* Foreign resident capital gains withholding regime: options
LEGISLATION AND SUPPORTING MATERIALS
On 22 June 2017 Treasury Laws Amendment (Foreign Resident Capital Gains
Withholding Payments) Act 2017 (Act No. 57 of 2017)External Link received
royal assent.
On 25 February 2016 the Tax and Superannuation Laws Amendment (2015 Measures
No. 6) Act 2016External Link received royal assent.
The following information is available to help you meet your obligations:
* Clearance certificate application for Australian residentsThis link opens
in a new window
* Capital gains withholding clearance certificate application online form
and instructions – for Australian residents
* Variation application for foreign residents and other partiesThis link
opens in a new window
* Foreign resident capital gains withholding rate variation application
online form and instructions
* Purchaser Payment Notification – Foreign resident capital gains
withholdingThis link opens in a new window
* Foreign resident capital gains withholding purchaser payment notification
online form and instructions
* Foreign resident capital gains withholding payments (webinar
recording)External Link
* Capital gains withholding – for real estate agent
* Capital gains tax withholding – a guide for conveyancers
* Foreign resident capital gains withholding – simplified Chinese
* GST at settlement
LEGISLATIVE INSTRUMENTS
* Acquisitions from multiple entities – Federal Register of Legislation page
PAYG Withholding variation for foreign resident capital gains withholding
payments – acquisitions from multiple entitiesExternal Link
* Deceased estates and legal personal representatives – Federal Register of
Legislation page PAYG Withholding variation for foreign resident capital
gains withholding payments – deceased estates and legal personal
representativesExternal Link
* Marriage or relationship breakdowns – Federal Register of Legislation page
PAYG Withholding variation for foreign resident capital gains withholding
payments – marriage or relationship breakdownsExternal Link
* Exempt entities – Federal Register of Legislation page PAYG Withholding
variation for foreign resident capital gains withholding payments – income
tax exempt entitiesExternal Link
* No residue after a mortgagee exercises a power of sale – Federal Register
of Legislation page PAYG Withholding variation for foreign resident
capital gains withholding payments - no residue after a mortgagee
exercises a power of sale 2020External Link
The foreign resident capital gains withholding (FRCGW) apply to vendors
disposing of certain taxable property under contracts entered into from 1
July 2016.
Last modified: 08 Dec 2022QC 48972
FOOTER
ABOUT ATO
ABOUT ATO TOGGLE VISIBILITY OF THIS SECTION
* About us
* Contact us
* Consultation
* Careers
* Media centre
* Taxpayers' Charter
* Research and statistics
* Subscribe
* Privacy
RELATED SITES
RELATED SITES TOGGLE VISIBILITY OF THIS SECTION
* Australian Business Register
* Tax Practitioners Board
* More related sites
TOOLS
TOOLS TOGGLE VISIBILITY OF THIS SECTION
* Forms and instructions
* Tax rates and codes
* Calculators and tools
* Order publications
* ATO app including myDeductions
USING ATO.GOV.AU
USING ATO.GOV.AU TOGGLE VISIBILITY OF THIS SECTION
* Accessibility
* Smarter searching
* Languages
* Acknowledgment of country
* Our commitment to you
* Disclaimer
* Definitions
* A-Z Index
* What's new See related links for What's new
* All
* About ATO
* Individuals
* Business
* Non-profit organisations
* Tax professionals
* Super
* Report tax evasion See related links for Report tax evasion
* The fight against tax crime
* Tax evasion reporting form
* Report avoidance schemes
* Sitemap See related links for Sitemap
* About ATO
* Individuals
* Business
* Non-profit organisations
* Tax professionals
* Super
* General
HELP FOR TAXPAYERS
HELP FOR TAXPAYERS TOGGLE VISIBILITY OF THIS SECTION
* Aboriginal and Torres Strait Islander people
* Education zone
* Freedom of information
* Getting help with your tax See related links for Getting help with your tax
* Do you need to lodge a tax return?
* Appoint someone to act on your behalf
* Tax help program
* Help for small business
* Norfolk Island tax and super
* Online security
* Other languages
* People with disability
LAW RULINGS AND POLICY
LAW RULINGS AND POLICY TOGGLE VISIBILITY OF THIS SECTION
* ATO advice and guidance
* New legislation
* Legal database
GETTING IT RIGHT
GETTING IT RIGHT TOGGLE VISIBILITY OF THIS SECTION
* Your rights and obligations
* Tax planning
* Fix a mistake or amend a return
* Dispute or object to an ATO decision
* The fight against tax crime
* Tax avoidance taskforce
* Tax and Corporate Australia
* Tax and individuals - not in business
* Tax and small business
TOGGLE VISIBILITY OF THIS SECTION
ATO SOCIAL
Australian Taxation Office©
Working for all Australians
Connect with us on...FacebookYouTubeTwitterLinkedInRSS
© Commonwealth of Australia
OUR COMMITMENT TO YOU
We are committed to providing you with accurate, consistent and clear
information to help you understand your rights and entitlements and meet your
obligations.
If you follow our information and it turns out to be incorrect, or it is
misleading and you make a mistake as a result, we will take that into account
when determining what action, if any, we should take.
Some of the information on this website applies to a specific financial year.
This is clearly marked. Make sure you have the information for the right year
before making decisions based on that information.
If you feel that our information does not fully cover your circumstances, or you
are unsure how it applies to you, contact us or seek professional advice.
COPYRIGHT NOTICE
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute this material as
you wish (but not in any way that suggests the ATO or the Commonwealth endorses
you or any of your services or products).
Build: 2022.08.18.1
Ask Alex for help
Ask Alex for help
Hello, I'm Alex, the ATO's virtual assistant. I'm here to help with your general
tax enquiries. You can view important information about your privacy. JAWS users
may experience difficulties with this virtual assistant. It is currently working
with NVDA and we are working on a solution to make this fully compatible with
JAWS for windows also.
Send