Australia Issues Discussion Paper on 10% Non-Final Withholding Tax on Disposals of Australian Property by Non-Residents

On 31 October 2014, the Australian Treasury issued a discussion paper on a non-final withholding tax on transactions involving taxable Australian property. The tax will be withheld by the payer at a rate of 10% for the disposal of Australian taxable property by foreign residents. The tax is not applicable for residential properties transactions under AUD 2.5 million or for disposals by Australian residents. The withholding tax is to apply from 1 July 2016.

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