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The 2026 State Budget has sought to increase access to home ownership and improve housing affordability by reducing upfront purchase costs. The reforms are intended to better align concessional thresholds with current market conditions, encourage new housing support and support activity in the construction sector. The changes may also assist in easing pressure on the rental market by helping more buyers transition into home ownership. Increased first home owner thresholds For transactions entered into on or after 7 May 2026, the First Home Owner Grant (FHOG) and First Home Owner Rate (FHOR) of duty exemptions and and concessional duty thresholds for newly built, established homes and vacant land will increase. Category Increase Previous FHOR of Duty - homes (established or newly built) No duty up to $600,000 $500,000 Concessional duty up to $800,000 $700,000 FHOR of Duty - vacant land No duty up to $450,000 $350,000 Concessional duty up to $550,000 $450,000 FHOG Cap - south of 26th parallel Increased to $800,000 $750,000 Decoupling Eligibility for the FHOR of duty concessions will no longer depend upon eligibility for the FHOG. This means eligible first home buyers may still qualify for a transfer duty concession even if the value of the transaction exceeds the FHOG cap. Commencement delayed Although measures have been announced, they cannot take effect until enabling legislation is passed by Parliament and RevenueWA completes the required system updates. The current estimated commencement date is 28 July 2026. What happens to transactions entered into before commencement? Transactions entered into between 7 May 2026 and the commencement date will initially be assessed under the existing duty rates and thresholds. Eligible transactions may then be reassessed and refunds issued where the new concessions apply. Off-the-plan duty concession expanded These latest changes build upon off-the-plan duty concessions announced 12 March 2026 (see our article: https://www.randalllawyers.com.au/post/upcoming-changes-to-the-wa-off-the-plan-duty-concession), which: extended the off-the-plan duty concession until 30 June 2028; increased the value thresholds; and expanded eligible transactions to include new dwellings purchased off-the-plan in survey-strata and community title schemes.

The Western Australian Government has announced a significant shift in residential tenancy law, with plans to ban “no-grounds” evictions. The reform represents a material change in the balance of rights between landlords and tenants and will require landlords, property managers and investors to reconsider how they manage tenancies. What is a “no-grounds” eviction? Under the current regime, a landlord can terminate a periodic tenancy without providing a reason, provided the required notice is given. Historically, this has provided landlords with flexibility to recover possession of their property without needing to establish a breach or rely on a prescribed ground. The proposed reform removes that flexibility. Why the change? This reform reflects a broader national trend toward increased tenant protections and greater regulation of residential tenancy management. The reforms are intended to strengthen security of tenure and improve housing stability for renters in an increasingly competitive rental market. What is changing? Termination will no longer be available simply at the landlord’s discretion. Once implemented, landlords will only be able to terminate a tenancy where a valid legal ground exists. Anticipated grounds are expected to include: breach of the tenancy agreement (eg: rent arrears) sale of the property requiring vacant possession landlord or a family member requiring occupation significant renovation, redevelopment or demolition change of use of the property illegal activity occurring at the property Practical implications for landlords This change is not merely procedural — it fundamentally alters how landlords manage risk. Key implications include: Reduced flexibility: landlords will no longer be able to "reset" a tenancy without cause. Decisions to lease a property will need to be made with a longer-term perspective. Document importance: where termination is based on a prescribed ground, proper notices, inspection records, communications and rent ledgers will become increasingly important. Strategic use of fixed-term agreements: fixed-term leases may become more attractive, as they provide greater certainty around end dates. Increased compliance risk: improper termination may expose landlords to disputes, delays and potential compensation claims. Impact on property sale: landlords intending to sell a property may face additional complexity where vacant possession is required. Sellers may need to carefully plan the timing of any sale process and termination notices. Tenant selection: as removing tenants may become more difficult, landlords and managing agents are likely to place greater emphasis on careful tenant screening and ongoing tenancy management. What about existing tenancies? It remains unclear how the reforms will apply to existing periodic tenancies, fixed-term leases already on foot and termination notices issued prior to commencement. Transitional provisions will be critical. What should you do now? While the reforms are not yet in force, now is the time to prepare: Review your current leasing strategy Ensure your tenancy documents and processes are compliant Review tenancy application procedures and data collection practices Consider whether fixed-term arrangements are appropriate for your circumstances Obtain advice before issuing termination notices during the transition period Final comments For landlords, the key shift is from discretion to justification. Understanding when and how you can lawfully terminate a tenancy will become more important than ever. If you would like advice on how these changes may affect your property or leasing arrangements, please contact Randall Lawyers.

The WA State Government has announced proposed changes to the Off-the-Plan Duty Concession - a concession offered by the WA Government, administered by RevenueWA, that reduces the amount of transfer duty you pay when you buy a new apartment, unit or townhouse before or during construction. The changes are aimed at supporting new housing supply and improving affordability. However, they are not yet in effect and remain subject to the Parliamentary process and system updates by RevenueWA. KEY CHANGES Increase the value thresholds The purchase price thresholds for the concession will increase to allow more buyers of newly constructed properties to access the full concession: The maximum concession rate will apply to purchases up to $800,000 (previously $750,000). The concession will phase down to the base concession rate for purchases above $900,000 (previously $850,000). Extend the concession The concession will be extended for a further 2 years, continuing the government’s policy of encouraging the development and purchase of new housing. Expand eligibility The concession will be expanded to include properties in survey-strata schemes, which were previously excluded. This is a significant change that may benefit buyers of newly created survey-strata lots. Commencement date The changes are intended to apply to transactions entered into from 12 March 2026. Implementation Implementation is currently anticipated to occur around July 2026, although the exact timing remains subject to the Parliamentary process. Transactions Settling Before Implementation For transactions entered into on or after 12 March 2026 that qualify under the proposed changes but settle before implementation: The transaction will initially be assessed at the current duty rates. Taxpayers will be eligible for a reassessment and refund once the changes take effect. What This Means for Buyers and Developers These proposed changes are expected to: Increase the number of buyers eligible for the concession. Improve affordability for new housing purchases. Support development of survey-strata and other off-the-plan projects.

The Supreme Court of Queensland decision in Evans v Jan [2025] QSC 31 provides an important reminder for buyers to ensure they understand their rights and obligations under a contract for sale.  Relying solely on verbal assurances or informal communications from agents can lead to costly mistakes, as seen in this case. Facts The purchaser, Mr Evans, entered a contract for the sale of property for a purchase price of $985,000.  The contract required Mr Evans pay a 10% deposit, being $98,500, when the contract was formed.  Under the contract, paying the deposit by the due date was an “essential term” meaning that time was of the essence.  Late payment However, Mr Evans did not pay the deposit on the due date as his bank had a daily transfer limit.  Having contacted the realtor to explain the delay "Do apologise. Deposit today and balance tomorrow. Very sorry bank is painful to deal with ” and the realtor having responded via text “ Ok as long as I let seller know 2 deposits today and tmr ”, Mr Evans paid the deposit in instalments over the next two days, but after the deadline. Termination Despite having received the full $98,500 deposit, the seller terminated the contract for breach of an essential term, for failure to pay the deposit on time.  Mr Evans sought specific performance of the contract as the deposit was paid in accordance with instructions that he claimed could be attributed to the seller via the conduct of the agent.  Supreme Court of QLD The Court held that the agent did not have actual or ostensible authority to agree to an extension of the deposit deadline.  Actual authority must be found in the conduct of the principal (the seller), not the conduct of the agent (the realtor).  As Mr Evans failed to pay the deposit by the date required, the seller was entitled to terminate the contract and the deposit was forfeited.   Would this occur in WA? Forfeiting a deposit like Mr Evans is less likely to occur in WA due to the Joint Form of General Conditions (incorporated into a standard REIWA contract for sale) requiring a notice regime for payment of a missed deposit.  If a buyer fails to pay a deposit when required, under the General Conditions, the seller is required to issue a notice giving the buyer 48 hours to pay the deposit.  If the buyer does not comply within 48 hours, the buyer is in default, and the seller may terminate the contract. Practical WA tips to avoid forfeit of deposit The General Conditions in WA do not expressly address whether termination of a contract following a partially paid deposit (or a deposit paid outside of a 48-hour notice) would result in a buyer forfeiting the amount already paid.  Whilst a seller may not automatically be entitled to keep a late or partially paid deposit (the General Conditions expressly exclude the operation of clause 23.1 which deals with termination following default for breach) the safest approach is to ensure the entire deposit is paid in cleared funds before the due time.  Clarify deposit due dates:  ask your solicitor to explain exactly how and when the deposit must be paid, especially if you are relying on bank transfers that may have limits. Build in time buffers: negotiate a deposit due date that is 5 – 10 business days after the contract is made, rather than the same day.  This gives breathing room. Check transfer limits with your bank: ensure you can send the full amount by the contract deadline or organise alternative payment options. If a notice has been served :  treat the 48 hours as hard and absolute, pay by electronic transfer, obtain confirmation from the agent/trust account holder that funds are cleared. Amendments: if the buyer can truly not pay: seek an immediate written extension from the seller.  Get it formally documented.  Do not rely on verbal assurances from agents. Get legal advice early: having a solicitor review contract wording before signing can prevent surprises later, especially around deadlines and the consequences of missing them. The bottom line for WA buyers In WA, whilst a notice regime exists, missing a deposit deadline can be just as serious as it is in QLD.  A strict deposit clause in a contract is legally binding once signed.  Buyers need to be proactive about timelines, funds and take legal advice.

WA’s rental market is experiencing sustained pressure, with low vacancy rates and rising rents. Despite this, the State Government has so far rejected calls to remove “no-grounds evictions” from the Residential Tenancies Act 1987 (WA)  ( RTA ). Current law and why it’s controversial Under the RTA, landlords may terminate a periodic tenancy by giving 60 days’ notice without providing a reason – also known as a “no-grounds eviction”.  Although retaliatory evictions are technically prohibited, they are difficult to prove.   As a result, many tenants feel vulnerable and hesitate to request repairs or assert their legal rights. What reform could change Other states have replaced no-grounds eviction with a requirement for landlords to rely on a prescribed ground to end a periodic tenancy.  These grounds include: the landlord or a family member intending to move into the property; sale of the property requiring vacant possession; significant renovations or change of use; or serious or repeated tenant breaches. In support of reform Transparency: requiring a stated reason for termination increases accountability and reduces opportunities for misuse. Security: tenants gain stability and protection from sudden displacement. Communication: tenants are more likely to request repairs or report issues without fear of retaliation. Consistency: aligns WA with eastern states where renting is increasingly recognised as a long-term housing arrangement. Against reform Investor confidence:  reduced control over investment properties may discourage investors, potentially worsening rental shortages. Reduced flexibility for owners:  everyday landlords may face obstacles when they genuinely need to reclaim their property. Pressure on courts:   if termination grounds are contested more frequently, WA’s court system (already limited in tenancy matters) may become strained. Potential impact In the short term, reform may prompt some landlords to shift tenants to fixed-term leases or consider selling.  However, in the long term, increased tenant security could reduce turnover, encourage healthier landlord–tenant relationships, and contribute to more stable housing outcomes. Conclusion As renting becomes a long-term housing reality for many Western Australians, the ability to end a tenancy without cause is increasingly viewed as outdated and unfair.  Ending no-grounds evictions would mark a significant shift in WA’s tenancy law, aiming to strengthen tenant protection while still preserving reasonable rights for landlords.

At Randall Lawyers, we are seeing more property owners in WA explore the option of converting single-tier built strata schemes into survey-strata plans.  This trend is particularly common with older duplexes, triplexes, and villa developments.  The shift can offer significant advantages for owners, buyers, and developers alike. Understanding the Difference Built strata : in a built strata scheme, boundaries are tied to the physical buildings. Common areas such as driveways, roofs, and gardens are often shared, meaning the strata company has ongoing responsibility for maintenance and repairs. Survey- strata : in a survey-strata scheme, boundaries are pegged on the ground through a land survey.  Each owner holds a defined land parcel, similar to a green title, with only limited common property (if any). Why convert to survey-strata? Clearer ownership: owners gain title to their own parcel of land, rather than just a “lot” within a building.  This gives a stronger sense of independence and simplifies long-term property management. Reduced common property: survey-strata schemes generally have little or no shared property.  This means fewer disputes between neighbours and reduced obligations for maintenance and insurance. Improved market appeal: banks, buyers, and valuers often view survey-strata lots more favourably.  Clearer ownership and reduced shared responsibilities can make a property easier to finance and sell, potentially increasing its value. Greater flexibility for improvements: owners of survey-strata lots have more freedom to extend, renovate, or rebuild within their boundaries (subject to local planning rules). This flexibility is particularly valuable for growing families or investors looking to redevelop. The conversion process While the process requires careful coordination, the long-term benefits often outweigh the upfront costs.  Converting from built strata duplex, triplex or villa to survey-strata involves: Strata company resolution  – agreement of all owners (usually unanimous). Survey work – a licensed surveyor prepares the new plan. Planning approval  – local government approval may be required. Registration  – new plan is lodged with Landgate under the Strata Titles Act 1985 (WA). Is conversion right for you? Every property is different.  For some owners, the existing built strata arrangement may be sufficient.  For others, a conversion can unlock greater independence, reduce disputes, and improve resale value. If you are considering converting your scheme to survey-strata, Randall Lawyers can guide you through the legal, planning, and registration steps.

Australians are embracing a property investment strategy known as “rentvesting” – renting a home in a location in which you want to live (often for lifestyle, work, or family reasons) whilst purchasing an investment property, typically in a more affordable or high-growth area, to build equity and with higher rental yields. Why are Australians rentvesting? Affordability constraints:  many first-home buyers are priced out of their preferred suburbs but still want to enter the property market. Lifestyle priorities:  rentvesting allows people to live where they want (close to work, beach, or urban hubs) without the burden of an unaffordable mortgage. Rental income: the income gained from leasing your investment property can be used to pay down your mortgage or to pay your own home rental costs. Investment focus:  rather than tying up all resources into a single principal place of residence, rentvestors can build a diversified portfolio in growth areas. Tax advantages:  investment properties may allow deductions for interest, depreciation, and other expenses – benefits not available to owner-occupiers. Capital gain:  if your   investment property increases in value, you could sell it at a profit later. Considerations for rentvestors Due diligence:   as with any property purchase, a rentvestor must ensure proper contract review, clear title, and thorough due diligence.  This includes understanding zoning, encumbrances, easements, and compliance with building regulations.   Landlord obligations:  by stepping into the role of a landlord, you must comply with residential tenancy legislation, including preparing compliant lease agreements, handling bonds and inspections correctly, meeting property repair and maintenance obligations, and understanding tenant rights and notice requirements. Structuring ownership:  the right ownership structure (eg: personal, joint, company, or trust) can affect tax efficiency, asset protection, and succession planning.  Legal and accounting advice should be sought before purchasing. Plan for uncertainty:   factor in inflation, interest rate changes, vacancy periods, and ongoing management and maintenance costs.  Capital Gains Tax:   unlike the family home, investment properties do not receive the full CGT exemption.  Knowing when and how CGT applies is essential, especially if planning to sell and reinvest.   No government concessions :  even if it is your first property, as a rentvestor you will not be eligible to receive the First Home Owner’s Grant or rate of duty.    Finance and guarantor risks:   rentvestors often use investment loans, which may have different lending criteria.  If family members provide guarantees, this raises important legal considerations regarding liability and enforceability. Overextending financially:   be wary of paying high rent and simultaneously managing mortgage repayments on the investment property. How We Can Help Whether you’re a first-time buyer, a seasoned investor, or simply exploring your options, our experienced property lawyers can help you navigate the legal landscape, including: contract review contract negotiation legal due diligence settlement landlord compliance tenancy advice managing disputes with tenants or co-owners For any tax or financial advice, please consult with your accountant and financial advisor.

Overview A private landlord who did not understand her obligations under WA’s tenancy laws has received a spent conviction and was fined $8,500 on 16 May 2025 by the Perth Magistrates Court.  The woman, who lives in NSW, pleaded guilty to four charges of breaching the Residential Tenancies Act 1987 (WA), regarding her handling of rent and bond payments, and a property condition report, for a property she owned in Ardross.  Demand for upfront rent In February 2024, the landlord entered into a tenancy agreement and demanded $16,200 to cover the first three months’ rent.  This demand, made a month before the tenant took occupancy, violated the Act which prohibits landlords from seeking more than two weeks’ rent in advance at this stage of the tenancy. Threatened with eviction Around a month before the due date for further rent, the landlord unlawfully demanded an additional $2,700 in fortnightly rent – a huge rent hike.  Via text message, the landlord threatened to evict the tenant if the payments were not made. Failure to lodge bond A further $16,200 paid as a security bond was not lodged with the Bond Administrator at Consumer Protection within the required 14-day timeframe.  Of this amount, only $5,400 of the bond was lodged and that was four months after it was received.  The remaining $10,800 was subsequently arranged for deposit with the Bond Administrator by the landlord but only following the initiation of prosecution action by Consumer Protection. Failure to provide Property Condition Reports The landlord also failed to provide the tenant with two copies of a property condition report within the required seven days, instead providing them 32 days late. Ignorance no excuse The landlord told the court she was unaware of her obligations under the Residential Tenancies Act.  However, in handing down the sentence, Magistrate Donna Webb said ignorance of the law was no excuse and that the landlord should have enquired about her obligations.  The landlord has since engaged a property manager to avoid any further breaches. Comment from the Commissioner Commissioner for Consumer Protection Owen Kelly said the Residential Tenancies Act was a vital safeguard for tenants, who were especially vulnerable during periods of high demand in the rental market.  In response to the case, Dr Kelly said: “When tenants have fewer options, they may have little to no power to negotiate with landlords before or during the tenancy.  Therefore, it’s crucial landlords respect the laws that have been put in place to protect them.” “The tenant in this case was subjected to unnecessary risk by being asked to pay three months of rent upfront before moving in.  She was also placed under unnecessary financial burden when further rent demands were made before that initial period had expired.” “Handling security bond money is a serious matter, and the 14-day lodgement rule exists to safeguard the interests of both tenants and landlords.” “All landlords with property in Western Australia need to familiarise themselves with the laws, or delegate this responsibility to a property manager, otherwise they risk facing legal repercussions.” If you find yourself in need of advice regarding your rights and obligations as either a landlord or tenant, please do not hesitate to reach out to Randall Lawyers.

With house prices rising faster than wages in many parts of Australia, it’s no surprise that more parents are stepping in to help their children get onto the property ladder.  There are several ways to help, each with its own benefits, risks, and legal implications. Here’s a guide to the most common options, and what you should consider before committing. Gifting a deposit A straightforward and popular option is to give your child a lump sum towards their deposit.  It might be a few thousand dollars or enough to help them avoid lenders mortgage insurance. Tip: A formal statutory declaration that confirms the money is a non-refundable gift (not a loan) may be required by lenders. Advantages Simple and quick. Can assist your child secure a better interest rate or obtain loan approval. Disadvantages You lose control over how your money is used.  Could affect your child’s eligibility for first home buyer grants.  If your child separates from their partner, the gift may become part of the asset pool. Loaning money If you would prefer to retain some control over your funds or expect to be repaid, a private loan may be the answer.  This can be structured with or without interest, and repayments can be flexible. Tip:  A formal loan agreement with security (like a mortgage over the property), is highly recommended. Advantages You maintain legal rights as a creditor. You can set terms that suit both parties Disadvantages Disputes can arise of the terms are not clearly documented. Banks may still treat it as a liability when assessing your child's borrowing capacity. If your child is granting a mortgage to a bank, your mortgage (if any) may need to be subordinate to the bank's mortgage - meaning that the bank get the first bite of sale proceeds. Acting as a guarantor Rather than hand over money, you can guarantee part of your child’s loan, usually secured against your own property.  This can reduce or eliminate the need for a cash deposit. Tip:  Banks can offer limited guarantees to reduce your risk.  Just ask! Advantages No cash outlay upfront. Helps your child avoid costly lenders mortgage insurance. Disadvantages You are legally liable if your child cannot make repayments. Your home may be at risk if things go wrong.  Can impact your ability to borrow yourself in the future. Joint purchase or co-ownership In this structure, you and your child both appear on the property title — you may be joint tenants or tenants in common, with an agreed share split. Tip:  A co-ownership agreement can clarify rights, responsibilities, and exit strategies. Advantages You may share in any capital growth. May give you more say over decisions about the property. Disadvantages May add complications if either party wants to sell or changes arrangements (including in relation to transfer duty). Could effect eligibility for grants or tax concessions. You may be liable for land tax or capital gains tax in the future. Things to Consider Before helping your child buy a home, ask yourself: Can I afford it?  Don’t compromise your own retirement or financial security. What happens if your child separates from their partner or defaults? Consider future relationship breakdowns, job loss, or illness. Do we need a written agreement? To make the best choice, involve your child in open discussions, seek legal and financial advice, and document everything clearly.  That way, you’re not just building a house — you’re helping build a strong foundation for their future.

The State Government has announced changes extending and expanding the off-the-plan duty concession.  The changes apply to transactions entered into from 21 March 2025.  Summary of changes An increase to the value of homes and vacant land that are eligible for no transfer duty or a reduced rate of duty. For off-the-plan duty concessions: an extension of the eligible contract dates until 30 June 2026; an increase to the value thresholds for pre-construction and under construction contracts; expanding the concession to purchases of single-tiered strata or community titles (building) scheme dwellings (but not a survey-strata scheme).  When? RevenueWA anticipates implementing changes to apply the new rates in early May 2025 for the first home owner rate of duty and in late June 2025 for the off-the-plan duty concession. Transactions that are eligible for a reduced amount of duty but settle before the changes can be applied may be reassessed for a refund of duty after settlement.  Quick reference guide   Increase Previous Purchase of vacant land No duty is payable on land valued up to $350,000 $300,000   The value of the land must not exceed $450,000 $400,000   If the dutiable value is between $350,000 and $450,000, duty is payable at a rate of $15.39 for every $100, or part of $100, by which it exceeds $350,000.    Purchase of a home No duty is payable on homes valued up to $500,000. $400,000   The value of the home must not exceed $700,000 for properties located in the Perth Metro and Peel regions. $600,000   If the dutiable value is between $500,000 and $700,000 in the Metro or Peel regions, duty is payable at a rate of $13.63 for every $100, or part of $100, by which it exceeds $500,000.  $600,000   The value of the home must not exceed $750,000 for properties located outside these regions. $600,000   If the dutiable value if between $500,000 and $750,000 outside the Metro or Peel regions, duty is payable at a rate of $11.90 for every $100, or part of $100, by which it exceeds $500,000.   $600,000 Off-the-plan purchases (pre-construction) No duty is payable on properties valued up to $750,000. $650,000   The 100% duty concession reduces to 50% for properties valued between $750,000 and $850,000. $650,000 - $750,000   The 50% duty concession applies to properties valued over $850,000. $750,000 Off-the-plan purchases (under construction) A 75% duty concession applies to properties valued up to $750,000. $650,000   The 75% duty concession reduces to 37.5% for properties valued between $750,000 and $850,000. $650,000   - $750,000   A 37.5% duty concession applies to properties valued over $850,000. $750,000 Off-the- plan purchases (strata scheme or community titles)   Concessions will be expanded to off-the-plan purchases of all strata scheme or community titles (building) scheme dwellings including townhouses and villas, not just multi-tiered schemes.  This does not apply to the construction of a dwelling on a survey-strata plan.

The ban From 1 April 2025 to 31 March 2027, foreign persons (including temporary residents and foreign-owned companies) cannot apply to buy an established dwelling in Australia unless an exception applies.  A review will be undertaken to determine if the ban should be extended beyond 31 March 2027. Why? The ban is said to respond to housing challenges facing Australians who will be able to buy homes that would otherwise have been bought by foreign investors whilst encouraging foreign persons to boost Australia’s housing supply. Previous position Until now, foreign investors have generally been barred from buying existing property except in limited circumstances.  The previous rules already limited classes of foreign buyers to, for example, temporary residents (or their spouses) acquiring an established homes to use as their place of residence whilst in Australia or buyers planning to redevelop a dwelling where the redevelopment would genuinely increase Australia’s housing stock. Exceptions to ban Limited exceptions to the ban include investments that significantly increase housing supply or support the availability of housing supply, and for the Pacific Australia Labour Mobility (PALM) scheme.  Other existing exceptions remain in place, such as for purchases by: permanent residents New Zealand citizens spouses of Australian citizens, permanent residents, or New Zealand citizens (when purchased as joint tenants). Enforcement The ATO’s foreign investment compliance team will enforce the ban and enhance screening of foreign investment proposals relating to residential property.  Tough enforcement action is said to be proposed for any non‑compliance. Land banking Alongside the temporary ban on foreign purchases of established dwellings, to ensure that vacant land is put to productive use within reasonable timeframes, foreign investors will be subject to development conditions when they acquire vacant land in Australia.

Introduced in 2016, the Foreign Resident Capital Gains Withholding ( FRCGW ) rules aim to ensure appropriate tax is withheld by purchasers or lessees of taxable Australian property. Significant changes have been made to the FRCGW regime, with withholding rules now applicable to all property sales.  Previous regime Previously, to avoid having 12.5% of the of the value of the property withheld, Australian residents selling property valued at $750,000 or more needed to obtain and provide to the purchaser, at or prior to settlement, a Clearance Certificate from the Australian Tax Office ( ATO ) confirming their status as an Australian tax resident.  Major changes Now, for contracts for sale entered into on or after 1 January 2025: 1. the withholding rate has increased from 12.5% to 15%; and 2. the $750,000 property value threshold will be removed. In other words, all Australian residents selling property must now obtain a Clearance Certificate from the ATO to avoid withholding.  Why change? Changes are intended to address Treasury’s concerns that the previous FRCGW rate did not collect enough tax to keep up with the Capital Gains Tax that should be collected on the disposal of foreign-held Australian property, particularly due to the appreciation in value of Australian real property in recent years.   Applying for a Clearance Certificate Whilst most Clearance Certificates are issued within a few days, some can take up to 28 days.  Clearance Certificates are valid for up to 12 months, allowing sellers to obtain them early.  Clearance Certificate is not obtained If a Clearance Certificate is not provided by settlement, the purchaser is required to withhold 15% of the sale price and remit it to the ATO.  If an amount is withheld, the seller will only receive a refund after their next income tax return is processed. Foreigners Foreign resident vendors or lessors cannot obtain a Clearance Certificate.  However, they may continue to apply for an ATO variation to reduce the FRCGW rate, potentially down to 0%, if they can demonstrate that the prescribed 15% rate is excessive.