Foreign Resident CGT Calculator Australia (2026–27)
Calculate Australian Capital Gains Tax (CGT) and 15% Foreign Resident Capital Gains Withholding (FRCGW) for non-resident property sellers, temporary visa holders, and Australian expats.
1. Property Acquisition & Sale Figures
2. FRCGTW Withholding & Non-Resident Details
Total Non-Resident CGT Payable
$177,850
Assessed under non-resident Stage 3 tax brackets (no 50% discount).
12.5% FRCGTW Buyer Withholding
$162,500
Remitted to ATO by buyer at settlement.
Tax Return Settlement Balance
$15,350 Owed
Foreign Resident CGT Breakdown
1. The Australian Foreign Resident CGT Framework (2026–27)
Under Australian tax law, foreign tax residents (and Australian expats living abroad) who sell Taxable Australian Real Property (TARP) are subject to specialized capital gains tax and mandatory withholding rules.
Foreign residents lose access to the standard 50% CGT discount for post-2012 ownership periods and are subject to mandatory 15% Foreign Resident Capital Gains Withholding (FRCGW) at property settlement.
2. FRCGW 15% Settlement Withholding Benchmarks
| Property Sale Price | FRCGW Withholding Rate | Mandatory Withholding | Clearance Certificate Impact | Non-Resident Tax Rate |
|---|---|---|---|---|
| $750,000 Sale Price | 15.0% Mandatory | $112,500 Withheld at Settlement | $0 Withholding if Resident Certificate Provided | 30.0% Non-Resident Rate |
| $1,200,000 Sale Price | 15.0% Mandatory | $180,000 Withheld at Settlement | $0 Withholding if Resident Certificate Provided | 37.0% Non-Resident Rate |
| $2,000,000 Sale Price | 15.0% Mandatory | $300,000 Withheld at Settlement | $0 Withholding if Resident Certificate Provided | 45.0% Non-Resident Rate |
| $3,500,000 Sale Price | 15.0% Mandatory | $525,000 Withheld at Settlement | $0 Withholding if Resident Certificate Provided | 45.0% Non-Resident Rate |
3. The Mathematics of Foreign Resident CGT & FRCGW
Net CGT Tax Payable (Tax_cgt) for sale price (P_sale), cost base (Base_cost), non-resident rate (r_nonres), and FRCGW withheld (W_frcgw) is:
Example Foreign Resident CGT Calculation:
A non-resident sells a Sydney unit for $1,000,000 (cost base $600,000, gross gain $400,000):
- FRCGW Withheld at Settlement: $1,000,000 × 15% = $150,000 withheld.
- Assessable Non-Resident Gain: $400,000 (No 50% discount).
- Non-Resident Tax Liability (30% to $135k, 37% to $190k, 45% balance): $155,350.
- Final ATO Tax Payable = $155,350 tax liability - $150,000 withheld = $5,350 balance due.
4. Step-by-Step Guide to Managing Foreign Resident CGT
Determine Australian Tax Residency Status at Contract Date
Confirm whether you are classified as an Australian resident or foreign resident for tax purposes.
Calculate Gross Capital Gain (Sale Price minus Cost Base)
Subtract original purchase price, stamp duty, legal fees, and capital improvements from gross sale price.
Apply Foreign Resident CGT Discount Rules (0% Discount)
Apply 0% CGT discount for post-May 2012 non-resident ownership periods (or apportion pre-2012 periods).
Calculate Non-Resident Income Tax Payable
Apply non-resident marginal tax rates (30%, 37%, 45%) to assessable capital gain.
Model 15% FRCGW Withholding vs ATO Tax Return Credit
Subtract 15% FRCGW withheld at settlement from total tax payable; claim refund or pay balance via ATO return.
5. Foreign Resident CGT Mistakes & Checklist
Assuming Expats Retain Main Residence Exemption While Living Abroad
Selling your Australian home while an overseas non-resident, incurring full 100% CGT back to purchase date.
Expecting a 50% CGT Discount as a Non-Resident
Applying the 50% CGT discount to Australian property capital gains accrued after 8 May 2012 as a non-resident.
Failing to Obtain an ATO Clearance Certificate Before Settlement
Being an Australian resident seller who forgets to obtain a clearance certificate, losing 15% cash at settlement.
Overlooking Double Tax Treaty Foreign Tax Credits
Failing to claim Australian CGT paid as a foreign tax credit on overseas tax returns in your country of residence.
Foreign Resident CGT Compliance Checklist
ATO Clearance Certificate Lodgment
Australian tax residents must apply for an ATO Clearance Certificate 14 days before settlement.
Expat Tax Residency Timing Verification
Evaluate returning to Australia to re-establish tax residency before signing property sales contracts.
Cost Base Asset Incidental Expense Receipts
Archive all original purchase stamp duty, conveyancing, interest, and renovation receipts to maximize cost base.
FRCGW Variation Application (Form 2289)
If 15% withholding exceeds actual CGT tax liability, lodge an ATO Variation Application prior to settlement.
6. Non-Resident Property Sale CGT Timeline
Tax Residency Status Assessment
Assess tax residency status; evaluate returning to Australia or lodging ATO Clearance Certificate.
ATO Clearance Certificate / Variation Lodgment
Submit online ATO Clearance Certificate application or FRCGW Variation request.
15% FRCGW Remittance to ATO
Buyer remits 15% gross sale price to ATO unless valid clearance certificate is provided.
ATO Non-Resident Tax Reconciliation
Lodge non-resident ATO return; credit 15% FRCGW withheld against final tax liability.
Disclaimer: This Foreign Resident CGT calculator and guide are provided for general educational and informational planning purposes only. Non-resident tax rates, FRCGW withholding rules, and expat main residence rules reflect 2026–27 Australian Taxation Office guidelines. This page does not constitute formal tax, legal, or conveyancing advice.
Charlotte Smith
Senior Personal Finance & Taxation Specialist at AussieSpot
Charlotte Smith is the lead personal finance advisor and workplace specialist at AussieSpot. Charlotte has over 12 years of experience helping Australian households build budgets, plan savings goals, and manage living costs.
Frequently Asked Questions (FAQ)
What is Foreign Resident Capital Gains Withholding (FRCGW)?
FRCGW is a mandatory ATO tax collection mechanism where property buyers must withhold 15% of the gross sale price at settlement and pay it directly to the ATO if the seller is a foreign resident or fails to provide an ATO Clearance Certificate.
Do foreign residents get the 50% CGT discount on Australian property?
No. The 50% CGT discount was abolished for foreign and temporary residents for capital gains accrued after 8 May 2012. Apportionment rules apply for properties acquired before May 2012.
Can Australian expats claim the Main Residence Exemption when selling property while living overseas?
Generally, no. Under tax law changes enacted in 2020, Australian expats who are non-residents for tax purposes at the time of contract execution lose the Main Residence Exemption, incurring full CGT from purchase date (subject to narrow life-event exclusions).
What income tax rates apply to capital gains for foreign residents in 2026–27?
Foreign residents pay Australian non-resident tax rates starting at 30% for taxable income up to $135,000, 37% from $135,001 to $190,000, and 45% for income exceeding $190,000 (without Medicare levy).
How do Australian resident sellers avoid having 15% FRCGW withheld at settlement?
Australian tax residents must apply for an ATO Clearance Certificate prior to settlement and provide it to the buyer. Obtaining a valid clearance certificate reduces FRCGW withholding to $0.