Purchasing Real Estate; Lease; Mining or Prospecting Rights directly or indirectly?

Purchasing Real Estate; Lease; Mining or Prospecting Rights directly or indirectly? Is the Market Value $750,000 or more? Is there any chance the Seller or one of the Sellers is a Non Resident of Australia for Tax Purposes? Australian Citizenship does not equate to Residency for Tax Purposes and neither does living in Australia. 
Applying from 1 July 2016, the Foreign Resident CGT Withholding rules were implemented to require withholding tax to apply on the acquisition of certain taxable Australian property from foreign residents. For transactions entered into prior to 1st July 2017, the rules apply to taxable Australian property with a market value greater than $2,000,000. The withholding rate for these transactions is 10%. However, as of 1 July 2017 this threshold was dropped to $750,000 with a 12.5% withholding rate to apply.
The responsibility to withhold falls with the purchaser. Unless the vendor provides a clearance certificate or variation certificate, the purchaser MUST withhold the correct amount and remit it to the Australian Taxation Office.
The types of assets which this regime applies to are:
  1. Taxable Australian Real Property
    a. Vacant land, buildings, residential and commercial property
    b. Mining, quarrying or prospecting rights where the material is situated in Australia
    c. A lease over real property in Australia if a lease premium has been paid for the grant of the lease
  2. Indirect Australian real property interests
  3. An option or right to acquire either of the above
There are also various practical issues to consider such as:
  • Correctly determining the residency status of the vendor
  • How to apply for a clearance or variation certificate
  • When the payment of withholding must be made
  • What to consider when there are multiple vendors
  • How long does a clearance certificate remain valid?
  • Correctly determining the residency status of the vendor