Australian CGT Calculation Service for Expats and Foreign Investors
Non-residents face a different CGT regime than Australian residents – no 50% discount, mandatory 15% withholding on certain property sales, and rules that generalist accountants routinely get wrong. ODIN Tax calculates your exact CGT liability under Australian law, accounts for applicable Double Tax Agreements, and prepares your return as a Registered Australian Tax Agent.
- 10,000+ Australian expats served across 40+ countries
- 4.9 / 5 Google rating from 330+ verified client reviews
- Specialist in non-resident CGT, FRCGW, and DTA offsets - not a generalist practice
This page provides general information only and does not constitute personal tax advice. Your individual circumstances determine how CGT applies to you. Speak to a Registered Australian Tax Agent for advice specific to your situation.
CONTENTS
The Ultimate Expat Tax Advantage Bundle
Discover the ultimate resources to maximise your property investments and streamline your expat tax obligations.
What is the CGT discount rule for Australian expats and non-residents?
Australian residents who hold a CGT asset for more than 12 months are eligible for a 50% CGT discount on capital gains. Non-residents and foreign residents are not eligible for that discount on gains accrued after 8 May 2012. Expats who were once Australian residents and later became non-residents must apportion their gain between the resident and non-resident periods. Getting this apportionment wrong is one of the most common errors ODIN Tax corrects when reviewing prior lodgments.
| Taxpayer Status | 50% CGT Discount (assets held 12+ months) | Gains Accrued After 8 May 2012 |
|---|---|---|
Australian resident | Eligible | Full discount applies |
Non-resident / foreign resident | Not eligible | No discount on post-8 May 2012 gains |
Former resident (mixed period) | Partial – resident-period gains only | Gain must be apportioned |
Discount eligibility depends on your residency status in the relevant financial year and how long you held the asset. These rules reference current ATO legislation; confirm rates and thresholds for your specific financial year with a Registered Australian Tax Agent.
What is the 15% Foreign Resident CGT Withholding and does it apply to my property sale?
The Foreign Resident Capital Gains Withholding (FRCGW) regime requires a purchaser to withhold 15% of the purchase price and remit it to the ATO when buying Australian property from a foreign resident. As of 1 January 2025, the previous minimum property value threshold was removed, meaning the 15% withholding rule now applies to all relevant property sales regardless of value (current as of the 2024-25 financial year). The 15% is withheld from the sale proceeds at settlement, not calculated on the actual gain (for the 2024-25 financial year). ODIN Tax reconciles the withholding against your actual tax liability and prepares your return for lodgment to address any overpayment or shortfall.
- FRCGW applies to foreign resident vendors at 15% of the contract price
- Australian resident vendors can apply for a clearance certificate from the ATO to prevent withholding
- If your residency status is uncertain, consult a Registered Australian Tax Agent to establish your position before settlement
- The withheld amount is a credit against your final tax liability – ODIN Tax prepares your return to reconcile the difference
FRCGW rules are set by ATO legislation and subject to change. Confirm the current requirements for your financial year before settlement.
Do non-residents pay CGT on Australian shares?
Non-residents are generally not liable for Australian CGT on shares in Australian companies, because shares are not classified as taxable Australian property under the rules applicable to most non-residents. The exception applies where the shares derive their value principally from Australian real property. ODIN Tax can review your share portfolio against the taxable Australian property tests to help establish whether CGT may apply on disposal.
- Ordinary shares in ASX-listed companies: generally no Australian CGT for non-residents
- Shares in unlisted companies with assets principally comprising Australian real property: potentially subject to CGT
- Managed funds and trusts with Australian property exposure: requires individual assessment
- Double Tax Agreement provisions in your country of residence may further affect treatment
Why does accurate CGT calculation matter for expats selling Australian property?
An incorrect CGT calculation on a property sale can result in underpaid tax, ATO penalties, or a refund left unclaimed. For non-residents, the variables multiply: residency status at acquisition and disposal, FRCGW credits, the applicable CGT discount rate, cost base adjustments, and any relevant Double Tax Agreement. ODIN Tax holds specialist knowledge across all 40+ DTA countries where its clients reside, and coordinates the CGT calculation with mortgage structuring and conveyancing where relevant through ODIN.
- Precise cost base calculation including capital improvement costs, acquisition costs, and holding costs
- Correct discount apportionment between resident and non-resident ownership periods
- FRCGW credit reconciliation against final tax liability
- Foreign Income Tax Offset (FITO) applications where overseas tax has already been paid on the same gain
- Coordination with mortgage and conveyancing teams for property transactions handled through ODIN
ODIN Tax has served more than 10,000 Australian expats across 40+ countries. The practice is led by Tax Director Pau Lam, who brings over 10 years of specialist Australian expat tax experience to every CGT and residency determination.
Frequently Asked Questions
What is Capital Gains Tax in Australia?
Capital Gains Tax (CGT) in Australia is not a separate tax but a component of income tax. A capital gain arises when you dispose of a CGT asset – such as property or shares – for more than its cost base. The net capital gain is included in your assessable income and taxed at your marginal rate. Non-residents are subject to Australian CGT on taxable Australian property, including real estate located in Australia.
Who pays CGT in Australia?
Australian residents pay CGT on capital gains from assets anywhere in the world. Non-residents and foreign residents pay Australian CGT only on taxable Australian property, which includes direct interests in Australian real estate and certain indirect interests (such as shares in entities where Australian real property makes up the principal asset value). Non-residents are generally not liable for CGT on ordinary ASX-listed shares.
Are Australian expats eligible for the 50% CGT discount?
Australian expats who are classified as non-residents for tax purposes are not eligible for the 50% CGT discount on gains accrued after 8 May 2012. If you held the property while an Australian resident and then became a non-resident, your gain must be apportioned between the resident period (discount may apply) and the non-resident period (no discount). The apportionment method is specific and must be applied correctly in your tax return.
What documents do I need for an Australian CGT calculation?
To calculate CGT on a property sale, you need: the original contract of sale at acquisition, settlement statements from both acquisition and disposal, records of all capital improvement expenditure, records of ownership costs eligible for inclusion in the cost base, and details of your residency status at both acquisition and disposal dates. For shares, you need trade confirmations showing acquisition price, date, and number of units, plus disposal details.
Can I minimise CGT on the sale of my Australian property as a non-resident?
Legitimate CGT planning for non-residents includes accurate cost base construction (ensuring all eligible costs are included), correct timing of disposal relative to your residency status, and application of any relevant Double Tax Agreement provisions. ODIN Tax focuses on ensuring you pay the correct amount of tax based on current ATO legislation, neither overpaying nor underpaying your actual liability.
What is the Foreign Resident CGT Withholding and how does it affect my sale proceeds?
Under the FRCGW regime, a purchaser buying Australian property from a foreign resident is required to withhold 15% of the contract price and pay it directly to the ATO. This withholding comes out of your settlement proceeds. It is not your final tax bill – it is a prepayment. ODIN Tax prepares your Australian tax return after settlement to reconcile the 15% withheld against your actual CGT liability, addressing any overpayment or shortfall.
What if I have not lodged Australian tax returns for several years and have a property sale to report?
ODIN Tax handles overdue and backdated tax return lodgments across multiple financial years, including penalty management and ATO amnesty strategy. If you have an unreported property disposal, the correct approach is to lodge the overdue returns proactively rather than wait for ATO enforcement action. ODIN Tax manages the lodgment process and engages with the ATO on your behalf to bring your obligations current.
Does a Double Tax Agreement reduce my Australian CGT liability?
Australia has Double Tax Agreements with 40+ countries. DTAs may affect how gains are taxed and whether a Foreign Income Tax Offset applies if you have already paid tax on the same gain in your country of residence. DTA provisions vary significantly by country. ODIN Tax has served clients across all major expat corridors – including Hong Kong, Singapore, UAE, UK, USA, Japan, South Korea, and Europe – and applies the correct DTA treatment for each jurisdiction.
About ODIN Tax
ODIN Tax is Australia’s specialist tax agent practice for Australian expats and non-residents, and a Registered Australian Tax Agent. The practice prepares Australian tax returns, resolves overdue lodgments, and provides tax residency and CGT advice for Australian citizens living overseas, with deep expertise across the non-resident tax rules that generalist accountants routinely get wrong. ODIN Tax is part of ODIN, which also provides mortgage broking and conveyancing services, giving expat property buyers an integrated team that coordinates tax strategy with property acquisition from day one.
This page contains general information only. It does not constitute personal tax advice and should not be relied upon as such. Tax rules change and your individual circumstances affect how CGT applies to you. Consult a Registered Australian Tax Agent for advice specific to your situation and financial year.
Our Partners Around The World
