Australian draft law imposes withholding tax on foreign resident property sales

The Australian goverment on July 7 launched a consultation on proposed legislation that would impose a 10 percent withholding tax on the disposal of Australian property by foreign residents. The tax is designed to assist with collection of capital gains tax liability of foreign residents.

The goverment first announced it would proceed with the tax November 2103. A discussion draft on the proposal was released October 2014.

The closing date for comments on the draft is August 7.

See:

• Exposure draft

• Explanatory material

• Release