From 1 July 2016 all Contracts of Sale of land and other businesses in Australia for more than $2m are subject to new rules about foreign investor CGT (capital gains tax) Withholding Regime.
All vendors whether foreigners or not will be required to have a clearance from the ATO.
How will this affect Visa holders ?
This means for visa holders and non residents that any sale will have 10% of the sale funds withheld by the ATO until tax returns are lodged relating to the sales and a clearance given.
See attached ATO guide. All agents should read and consider this material. Unless a clearance issued by the ATO is supplied the Purchaser will by law hold 10% and pay to the tax office.
For more information: