ATO webinar: Foreign resident CGT changes
21 June 2017
The Australian Taxation Office will present a webinar for QLS members on Thursday 29 June to provide an overview of the foreign resident capital gains withholding framework and the recent changes. The webinar will run from 12:30 pm to 1:30pm.
On 15 June, the Federal Parliament passed changes to the foreign resident capital gains withholding framework, as foreshadowed in QLS Update on 7 June.
Subject to receiving royal assent, the legislation amends the Taxation Administration Act 1953 (Cth) to modify the foreign resident capital gains withholding payments regime to:
- increase the withholding rate to 12.5%; and
- reduce the withholding threshold to $750,000.
More information on these changes is available from the ATO.
The existing threshold and rate will apply for any contracts that are entered into before 1 July 2017, even if they are not due to settle until after 1 July 2017.
QLS is working with the REIQ to update the standard real estate contracts. Please keep watch for updates from QLS on the new contracts.
This will be a good opportunity for Queensland practitioners to gain an understanding of how these changes will affect practice from 1 July.