Australia’s strengthened foreign resident Capital Gains Tax rules began on 1 October 2026. The guidance was last updated on 2 October 2026 and explains new notification requirements for certain foreign vendors making non-Indirect Australian Real Property Interest declarations.

The changes apply where a foreign vendor provides a non-IARPI vendor declaration to a purchaser in relation to an asset disposal, including related transactions, valued at A$50 million or more.

New Notification Requirement for Foreign Vendors

From 1 October 2026, affected foreign vendors must notify the ATO using the approved form.

The notification generally needs to be completed at least 28 days before settlement.

After notifying the ATO, the vendor must also inform the purchaser in writing that the notification has been made.

The requirement applies specifically to non-IARPI vendor declarations involving asset disposals of A$50 million or more.

New Form and Guidance Published

To support the new rules, the ATO has published guidance covering the notification requirements.

It has also released the Notice of non-IARPI declaration form and accompanying instructions.

The instructions explain how to download, complete and submit the form by email.

These materials are intended to support foreign vendors in meeting the new requirements before settlement takes place.

Purchasers Need Written Confirmation

Under the new rules, the vendor must complete both parts of the notification process.

This means notifying the ATO using the approved form and separately confirming to the purchaser in writing that the notification has been made.

If these steps are not completed, the purchaser cannot rely on the non-IARPI declaration.

In that situation, foreign resident capital gains Withholding may apply to the transaction.

Rules Apply From 1 October 2026

The strengthened foreign resident CGT regime took effect from 1 October 2026.

Foreign residents with Australian investments who are considering relevant asset disposals need to take the new notification requirements into account where the A$50 million threshold is met.

The notification process forms part of the broader changes to Australia’s foreign resident capital gains tax rules.