Foreign Resident Capital Gains Withholding Regime - Special Condition in Contract
Readers may recall my previous post which briefly touched on the foreign resident capital gains withholding regime (FRCGWR) and its affect on leases. My previous post can be found here.
The following FRCGWR rate and threshold will apply to contracts entered into on or after 1 July 2017:
Threshold = for disposals of real property where the contract price is $750,000 and above (lowered from $2 million); and
Rate = 12.5% (increased from 10%).
Practitioners, buyers and sellers should be aware that special condition 1B of the Contract of Sale of Real Estate (published by the Real Estate Institute of Victoria and the Law Institute of Victoria) has been amended to reflect the introduction of the withholding regime. A link to the full special condition is on the Law Institute of Victoria Website and can be found here.
The contents of this publication is for reference purposes only. This blog post does not constitute legal advice and should not be relied upon. If you require legal advice please contact Sarah Ward at Aitken Partners on (03) 8600 6056.