Australian taxation on foreigners is set to change drastically for property investors selling their assets, with the deadline on January 1, 2025. This impending shift in tax laws will have far-reaching consequences for foreign property owners in Australia.

Our article was featured in The Star Publications (Malaysia). Key Takeaways:

  1. Withholding Tax Increase: From January 1, 2025, the Foreign Resident Capital Gains Withholding rate will jump from 12.5% to 15% for all property sales by foreign owners
     
  2. Land Tax Escalation: Land tax burdens are rising, with many investors facing retrospective bills. Victoria now applies a 4% absentee owner surcharge on top of standard land tax rates
     
  3. Broader Impact: Victoria’s land tax threshold reduction from A$350,000 to A$50,000 affects more property owners
  4. Urgent Action Required: Experts advise foreign investors to act quickly before the 2025 deadline to avoid severe penalties and reassessments
    Australian Taxation on Foreigners: Major Changes for Property Sellers by January 1, 2025

Australian taxation on foreigners is becoming increasingly complex, with different states implementing various surcharges and taxes. For instance, New South Wales is set to increase its foreign property owner surcharge from 4% to 5% in 2025

The article emphasizes the critical nature of understanding Australian taxation on foreigners and taking proactive measures before the January 1, 2025 deadline. These include submitting tax returns, obtaining a tax file number, and carefully considering the implications of property transfers or sales

Read the full article here: 

Or download this PDF to read the article:
It may become too taxing Down Under

Disclaimer: While the information in this blog post is based on the recent announcements made, the interpretation and analysis presented are our own. 
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Our team at TJD Accounting Services has over 40 years of experience in handling non-resident tax returns and providing financial guidance to overseas (foreign) investors. Let us help you make informed decisions to help protect your assets and finances.  

Email us at info@tjdaccounting.com.au or call +61 3 9379 4040. 

You may like to read another article feature on TJD Accounting on some possible solutions for foreign property investors: 
https://tjdaccounting.com.au/non-resident-property-owners-in-australia/https://tjdaccounting.com.au/capital-gains-tax-for-foreigners-australia/

Please watch this video skit as we break down the tax complexities in an easy to understand manner: 
https://youtu.be/FvuVgmQO7-w?si=WxvIR63cRrxFRnWihttps://www.youtube.com/watch?v=FSdXTlTRcrA&list=PLexF0GlC0kOFl0fAcrzSxuTud5rr1QP59&index=1

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