Hi
From what I have seen on the ATO website Foreign and temporary residents are subject to CGT only on taxable Australian property - in my case an apartment.
Can I still choose to have disposed of my apartment when I cease to become an Australian Resident for tax purposes as I can do for shares? Or I am not allowed to do this for TAP assets.
Thanking you
Ben
Hey @BobbyBrown
No but, I think you answered your own question 😀
Whether you're an Aust resident or not, you pay CGT on property you sell.
Foreign residents aren't eligible for the 50% discount.
They can't claim the main residence exemption.
If your residency changes however, then your eligibility for discount and exemption changes.
Here's some more info on residency and CGT.
Hey @BobbyBrown
No but, I think you answered your own question 😀
Whether you're an Aust resident or not, you pay CGT on property you sell.
Foreign residents aren't eligible for the 50% discount.
They can't claim the main residence exemption.
If your residency changes however, then your eligibility for discount and exemption changes.
Here's some more info on residency and CGT.
Hello ATO,
In this case, does that mean the Foreign Resident pays two lots of taxes on sale of the property i.e. 15% withholding tax AND CGT? Isn't that paying too much tax to the government for the sale of the property? Then does that mean the foreign resident should choose to somehow become Australian resident for tax purpose by lodging a tax return for the income year which the sale happened and get exemption for CGT, since witholding tax is already paid? I don't understand.
Thanks
A
Hey @Anttts,
When a foreign resident sells property, the buyer must withhold 15% of the sale price and send it to us on the seller's behalf.
This isn’t a separate tax, it’s a prepayment toward your actual Capital Gains Tax (CGT).
The seller lodged a tax return:
Becoming a tax resident won’t automatically exempt you from CGT. To qualify for CGT discounts or exemptions, you need to meet strict residency tests, and possibly the main residence or life events exemption rules.
Hi Kara,
Thank you for your reply. I understand now, that FRGWH Tax is a prepayment (full or partial) of the CGT which will be adjusted for at end of the tax year.
Understood. I do think that more than likely, there is a top-up required of the vendor because CGT rate is very very high! Unless there a material losses for that FY.
Thank you.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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