Australian Tax Returns for Foreign Resident Property Owners
AIMS Australia Tax Accountants assists foreign resident property owners with Australian rental income
reporting, rental schedules, review of potentially deductible expenses, borrowing costs, capital works,
decline in value of depreciating assets, property-sale CGT, foreign resident capital gains withholding
records and credits, and overdue lodgments.
Compliance note
Rental deductions are not automatic. The property must generally be rented or genuinely available for
rent, and expenses may require apportionment for private use, joint ownership or periods when the
property was not income-producing. Repairs, capital works and depreciating assets are subject to
different tax treatment.
Current FRCGW notice
For relevant contracts entered into on or after 1 January 2025, the standard foreign resident capital
gains withholding rate is 15% and the former property-value threshold no longer applies. The amount
withheld is not necessarily the vendor’s final Australian CGT liability. Foreign resident vendors may
apply for a variation where appropriate; Australian resident vendors generally require a clearance
certificate to prevent withholding.
Matters We Commonly Review
Australian rental income
Rental property deductions
Loan interest and borrowing costs
Repairs and maintenance
Capital works and decline in value of depreciating assets
Rental schedules for Australian tax returns
Australian property-sale CGT schedules
Overdue rental property returns
Foreign resident capital gains withholding records and credits, where applicable
Amendments to prior-year property returns
Start with a Preliminary Enquiry
Provide a concise summary of your situation through the Initial Tax Enquiry Form. Do not include TFNs, passport numbers, bank account details or other highly sensitive identifiers.
