Changes to foreign investment to affect WA sellers in general

The Federal Government has announced a shake up to the foreign resident capital gains withholding regime, which will impact WA sellers.
The changes apply to Offer and Acceptance contracts entered into on or after 1 July 2017, with a purchase price of $750,000 or more.
All sellers will now be required to apply for a Clearance Certificate from the Australian Taxation Office (ATO) when the purchase price of their property is $750,000 or more, and provide this to the buyer.
Further, the rate at which the amount is withheld for foreign tax residents will increase from 10 per cent to 12.5 per cent.
If the buyer has not received a Clearance Certificate from the seller at settlement, they are required to withhold 12.5 per cent of the purchase price and send that amount to the ATO.
Applications for clearance can be made online through the ATO website. Affected sellers should not delay in making an application.
For more information, view ‘Foreign Resident Capital Gains Withholding Regime’ guide for sellers in the ATO website.