Queensland Law Society

Capital Gains Withholding Framework

A new tax measure will apply to the acquisition and disposal of certain taxable property from 1 July 2016. This legislation will apply to a range of transactions in addition to the sale of Australian real property.

The Commonwealth Government’s foreign resident capital gains tax withholding regime will require the acquirer of certain interests in property to withhold 10% of the cost base of the asset that is being acquired.

Although the “cost base” will generally be the purchase price for the asset, practitioners need to be aware that the particular “cost base” will depend on the nature of the transaction. 

For information on upcoming webinars and resources on this topic, you can click on the below links.

REIQ Contracts

QLS and the Real Estate Institute of Queensland have prepared amendments to four of the standard contracts to reflect the new tax withholding regime.

Comparison tables summarising the contract amendments are now available:

  1. Residential House & Land (11th edition v 12th edition)
  2. Residential Lots in a Community Titles Scheme (7th edition v 8th edition)
  3. Commercial Land & Buildings (4th edition v 5th edition)
  4. Commercial Lots in a Community Titles Scheme (3rd edition v 4th edition)

QLS is preparing consolidated contracts for release and members will be advised as soon as these documents are available.