Foreign Resident Capital Gains Withholding Australian Resident Clearance Certificates (FRCGW)

Vendors of all Property in Australia are required to provide a Clearance Certificate from the Australian Taxation Office to evidence that they are an Australian Resident for Tax Purposes. The Clearance certificate is required to be provided to the purchaser prior to settlement. In the event that the Vendor is unable to provide a Clearance Certificate to the purchaser prior to settlement, the Purchasers is required to withhold a % of the sale price and remit that amount directly to the ATO at settlement and the Vendor will not receive those funds until they lodge a tax return to the ATO.

This procedure is part of the Foreign Resident Capital Gains Withholding “FRCGW” requirement of the Australian Taxation Office. Click on the image below to complete the clearance certificate application.