Legal Project Management Plan & Checklist
Purpose of this Guide: This fork applies where the vendor is a foreign tax resident for Australian purposes. From 1 January 2025, the FRCGW threshold was removed and the withholding rate increased to 15%. A foreign resident vendor CANNOT provide an ATO Clearance Certificate (that mechanism is for Australian residents only). Instead, a foreign resident must apply for a FRCGW Variation under s.14-235 of Schedule 1 to the ***Taxation Administration Act 1953 (Cth)*** to reduce the withholding rate. Failure results in the purchaser withholding 15% of the total purchase price at settlement. Access the ATO FRCGW portal for current guidance. Verify current guidelines on the official .
The Process at a Glance: Confirm foreign tax residency, engage an Australian-registered tax agent, prepare and lodge the withholding variation application with supporting CGT calculation and cost base evidence, obtain the ATO variation notice, provide it to the purchaser before settlement. Verify current guidelines on the official Queensland Legislation. Access services via the Queensland Courts.
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Business Sale (Vendor) - Foreign Resident Vendor - FRCGW Variation Application matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for COMMERCIAL cases, outlining the standard TRANSACTIONAL process. Utilize these tracking templates to manage your legal cases efficiently.
Establish the foreign vendor’s FRCGW obligations and engage specialist tax advice.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Australian tax residency determined under s.6(1) Income Tax Assessment Act 1936 (Cth) and s.995-1 Income Tax Assessment Act 1997 (Cth).
FRCGW basis: Schedule 1, Taxation Administration Act 1953 (Cth), s.14-200. A foreign resident cannot provide an ATO Clearance Certificate. They must apply for a withholding variation under s.14-235.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Formally request a reduction in the FRCGW withholding rate.
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.
, s.14-235 governs withholding variation applications.
Ensure purchaser withholds only the ATO-approved reduced rate, not the full 15%.
Coordinate the collection and review of all financial documentation required for disclosure, including statements, valuations, and supporting schedules as mandated by the rules.
Australia has double tax treaties with many countries that may reduce or eliminate Australian CGT obligations for certain foreign residents. Check the relevant treaty before finalising the application.