Estimate Foreign Resident Capital Gains Withholding

Calculate the potential FRCGW amount that may need to be withheld from an Australian property transaction at settlement.

FRCGW SETTLEMENT REQUIREMENTS

Check the Potential Withholding Before Settlement

Understand how the current withholding rate, clearance documentation and transaction value can affect settlement proceeds and purchaser obligations.

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FAQs

FRCGW Questions for Property Transactions

These answers explain current withholding rules, clearance certificates and what buyers and sellers should consider before completing an Australian property settlement.

What does FRCGW mean?

FRCGW means foreign resident capital gains withholding. It requires purchasers in certain Australian property transactions to withhold an amount and pay it to the ATO unless appropriate clearance or variation documentation is provided.

What is the current FRCGW rate?

For relevant property contracts signed on or after 1 January 2025, the withholding rate is 15%. The previous $750,000 property-value threshold was removed, meaning the rules can apply regardless of the property’s value.

Does an Australian resident seller need a clearance certificate?

Australian resident vendors selling relevant Australian real property generally need to provide a valid ATO clearance certificate to the purchaser to prevent the 15% withholding amount being deducted.

What happens if the seller does not provide a clearance certificate?

Where no valid clearance certificate or applicable variation is supplied, the purchaser may be required to withhold at the full applicable rate and remit the amount to the ATO.

Can the withholding amount be reduced?

Potentially. An eligible vendor may apply to the ATO for a variation. If approved, the purchaser follows the rate specified in the ATO variation notice rather than automatically withholding 15%.

Is FRCGW the seller's final capital gains tax amount?

No. FRCGW is a withholding mechanism, not necessarily the vendor’s final tax liability. The final position is determined through the vendor’s Australian tax affairs.

Need FRCGW Sorted Before Settlement?

Make sure the right certificates, withholding requirements and settlement arrangements are addressed before your Victorian property transaction completes successfully.