Australian Rental Property While Abroad
Managing your AU investment property as a non-resident — withholding, deductions, depreciation, and what happens when you sell.
Non-resident withholding: Your tenant or property manager must withhold 12.5% of gross rent and pay it to the ATO if you're a non-resident. You can apply for a variation to reduce this if your net rental income is lower.
Rental Income Calculator
Selling Your Property as a Non-Resident
When you sell Australian property as a non-resident:
- FRCGW (Foreign Resident Capital Gains Withholding): The buyer must withhold 12.5% of the purchase price at settlement and pay it to the ATO. This applies to properties sold for $750,000+ (from 1 Jan 2025: all properties). You claim this back via your tax return.
- No CGT discount: Assets acquired after 8 May 2012 get no 50% discount. See our CGT Discount calculator.
- No main residence exemption: Post-30 June 2020, the main residence exemption is not available to non-residents (with limited exceptions for CGT events before 30 June 2020).
- Non-resident tax rates: Capital gain is taxed at 32.5% from the first dollar.
Variation request: If your rental property is negatively geared, apply for a PAYG withholding variation so the 12.5% is reduced. Use the ATO's online variation form. This prevents over-withholding and improves your cash flow.