Queensland Law Society

Foreign resident capital gains withholding

New simplified process for purchaser payments

The Australian Taxation Office (ATO) is simplifying the way in which foreign resident capital gains withholding (FRCGW) payments are made.

From 11 December 2017, only one FRCGW payment is required per settlement, even if two or more purchasers are included in the transaction.

When purchasers lodge their purchaser payment notification with the ATO, they will receive a single payment reference number (PRN). This will be sent to the person listed as the primary contact on the purchaser payment notification form. They will also be sent one payment slip with a barcode that can be used to pay the withholding tax.

Only a single payment is required to pay the total withholding amount. However, where two or more purchasers are included in the transaction, they may choose to make separate payments. In this instance, the same payment slip should be used for each payment.

Payment can be made electronically to the ATO by quoting the PRN or in person at any Australia Post outlet using the payment slip. Cheque payments can also be mailed to the ATO along with the payment slip. Once the payment is received the primary contact purchaser will receive a payment confirmation email or letter.

Visit the ATO website for more information.