Australia on February 25, 2016, enacted the Tax and Superannuation Laws Amendment (2015 Measures No. 6) Bill of 2015 (the Bill). After passing both Houses of Parliament, the Bill received royal assent on February 25, 2016. The Bill enacts a new 10% non-final withholding tax on the disposal of certain taxable Australian property by foreign residents.
The new regime will apply to transfers of direct and indirect interests in taxable Australian property on or after July 1, 2016.
Foreign residents that currently hold interests in taxable Australian property, or that are contemplating acquiring such assets from other foreign residents, should be aware of the potential impact of the new rules.