Level 3, 276 Pitt St., Sydney NSW 2000 (02) 9264 9267 0414 292 368

AJML Accountants Update – Apr 2022

Foreign resident capital gains withholding – part 3

Purchaser payment notification form

Purchasers are not required to notify us of a transaction if:

  • the purchase price of the real property is less than $750,000.
  • all vendors have supplied clearance certificates
  • all vendors have supplied vendor declarations
  • all vendors provide a notice to vary withholding set at 0%.

When an amount is required to be withheld, a foreign resident capital gains withholding purchaser payment notification form must be completed by all the purchasers involved in the sale. The purchaser will need to provide the details of the vendors and the asset in the application.

Once a payment notification form is processed, a PRN will be issued and a PDF icon they can click to obtain a downloadable barcode to use at Australia Post will be generated. It is recommended that the downloadable barcode always be printed to avoid keying errors.

Only one PRN is issued per purchaser payment notification form, even if multiple purchasers are supplied on the form.

The full payment can be made using the PRN or payment slip provided. Where two or more purchasers are included in the transaction, they can choose to make separate payments and use the same PRN or payment slip.

How to pay

There are three methods the purchaser can use to pay us.

  1. Transfer the amount via electronic funds transfer (or BPAY®)
  2. In person at Australia Post
  3. Mail a cheque to us with the PRN (Note: Large withholders may pay the subdivision 14-D withholding amount by non-electronic means)

After payment has been made

A receipt from either Australia Post or the ATO is proof the purchaser has made the payment and fulfilled their obligations.

A payment confirmation email or letter will be sent to the nominated contact on the purchaser payment notification form.

Confirmation will be sent by email if an email address is provided in the foreign resident capital gains withholding purchaser payment notification, otherwise it will be mailed to the address of the contact.

Vendors will need a copy of the payment confirmation and use this information to complete their tax return.