The misleadingly-named Foreign Resident Capital Gains Withholding rules now apply to transfers of Australian real property valued at $750,000 or more. This reduced threshold took effect on 1 July 2017 (previously it was $2 million). Who do these rules affect?
Going by the figures in our infographic, many Australian families unwittingly buying or selling their family home, people who are not even foreign residents, are unaware that the typical sale or purchase of a property is subject to these rules. As at June 2017, the median house price in Australia was $818,416 — well above the $750,000 threshold. The median prices in Sydney and Melbourne also exceed the threshold, and Canberra is not far behind.
Read our Foreign Resident Capital Gains Withholding article to understand how these withholding rules apply to both residents and foreign residents who are buying or selling property.