Disposal of Australian property by Non-Residents
A Treasury discussion paper released on 31 October explores how the 10% non‑final
withholding tax will apply to the disposal of taxable Australian property by
foreign residents, where the value of the residential property transactions are
under $2.5 million.
Under the measure, the payer in a transaction will have an
obligation to withhold 10% of the proceeds payable in relation to the
transaction. The measure was announced by the previous Government in the
2013/2014 Budget and adopted by the current Government. It is intended to apply
from 1 July 2016.