FRCGW stands for Foreign Resident Capital Gains Withholding, ATO QC48972 has official information.

Recently has two changes, since 1 January 2025, the rate has changed from 12.5% to 15% and the property value threshold of $750000 has been cancelled, which means ALL property will be charged 15% for FRCGW.

Below is quoted from ATO QC48972 website.

Rate of withholding from a property sale

The following FRCGW rates apply to the market value of property contracts signed:

• Up to and including 31 December 2024, a rate of 12.5% applies to property valued at $750,000 or more.
• On and after 1 January 2025, a rate of 15% applies to the value of all property.

What does FRCGW for

The vendor must get a Clearance Certificate from ATO, otherwise the purchaser will withhold and remit this to ATO at or before settlement.

Below is the official quote from ATO

Foreign resident capital gains withholding (FRCGW) applies to all (individual and non-individual) vendors (property sellers) selling or disposing of certain taxable real property (property).

When selling or disposing of property in Australia:

• Australian residents for tax purposes (Australian residents) must have a valid clearance certificate issued by us at, or before settlement. Without a clearance certificate, FRCGW must be withheld from the sale proceeds by the purchaser and paid to us.
• Foreign residents (also known as non-residents) may incur capital gains tax (CGT) on the sale of Australian property. Purchasers withhold FRCGW from the sale price and remit this to us to go toward payment of this liability. FRCGW must be withheld unless the foreign resident vendor has a variation notice specifying a reduced rate of FRCGW.
• Purchasers must pay any amount they withhold to us at, or before settlement.

If you still have questions, welcome to contact us.