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HumbleBee(Initiate)Registered Tax Professional
3 June 2024

I have a client who acquired their home in Sydney 20 odd years ago but left to move back to original overseas country in 2019. The home was left to her son to stay since ever she left. I believe that she is not able to apply for a clearance certificate as a non-resident. But if she does not come back to Australia before she dispose of her home, could she be able to claim the main residence exemption? If she pay the Foreign capital gains withholding tax, could she be able to claim it back in her tax return? I reckon she can't but just like to confirm.

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TobyJDodd(Devotee)Registered Tax Professional
3 June 2024

Hi @HumbleBee


She can claim credit for the FRCGW in her tax return. As per normal, if her tax payable for the year is less than the credit she will get a refund.


See - https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/foreign-resident-capital-gains-withholding/capital-gains-withholding-impacts-on-foreign-and-australian-residents#


Toby

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Could a foreign resident claim back the Foreign Capital Gains Withholding tax? | ATO Community