Month: January 2026

Foreign resident capital gains withholding (FRCGW) must be withheld on all real property (property) sales unless the vendor is an Australian resident for tax purposes.

All Australian residents (for tax purposes) selling or disposing of Australian real property (property) must have a clearance certificate and give it to the purchaser at, or before settlement.

Without a clearance certificate, the purchaser must withhold up to 15% of the sale (or market value if not sold at arm’s length) for foreign resident capital gains withholding (FRCGW) purposes.

To support small businesses to transition to alternative services prior to this time, new users will be unable to register to use the service from 1 October 2025.

Existing users are encouraged to take steps now to transition to alternative options. These include reviewing your existing software and payroll packages, which may already include super functions, or looking at options offered by super funds, commercial clearing houses, or other payroll software or providers.

For more information visit ato.gov.au/howtopaysuper or speak with your registered tax professional.

Source: Australian Taxation Office