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Withholding tax in Australia 2026
Australian investment income leaves the country with final withholding: a light 10% on interest, 30% on royalties and unfranked dividends (typically 15% by treaty) — and 0% on fully franked dividends, since the company already paid its tax.
Property is the enforcement focus: buyers must withhold 15% of the price on any Australian real estate bought from a non-resident.
At a glance
- top rate
- 30% (royalties and unfranked dividends, before treaties)
- entry band
- 0% on fully franked dividends
- tax year basis
- Taken when the payment is made
- filing deadline
- Final for most investment income — no return needed
- residency basis
- Australian-source income of non-residents
- regime flag
- 15% non-final withholding on property sale proceeds
Rates
Withholding on payments to non-residents (2025/26)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Fully franked dividends |
| 30% | Gross | Unfranked dividends — commonly 15% under treaties; final |
| 10% | Gross | Interest — final; some public debentures exempt |
| 30% | Gross | Royalties — often 5%–15% under treaties; final |
| 15% | Distribution | Managed investment trust distributions to most treaty-partner residents |
| 15% | Gross sale price | Australian property sold by a non-resident — non-final, credited on assessment; no minimum threshold since 2025 |
| 35% / 65% | Super balance | Departing temporary workers withdrawing superannuation (65% for working-holiday makers) |
Thresholds & allowances
- Treaty network40+ comprehensive treaties
Interest often stays 10%; dividends typically 15%; royalties 5%–15%
Residency
Residency trigger
Withholding applies to non-residents' Australian-source investment income and is usually final — properly withheld income needs no Australian return.
Non-resident treatment
Employment income for Australian workdays is taxed through payroll at non-resident rates (30% from the first dollar); working-holiday and seasonal-worker schemes have their own flat rates of 15%.
Notes
- The franking system makes the dividend rate structural: franked payouts leave at 0% because the 25%–30% company layer already stuck.
- Quoting no Australian Business Number on business payments triggers top-rate withholding of 47%.
- Management and technical service fees generally escape withholding entirely if there's no Australian permanent establishment.
- Temporary residents are exempt from interest withholding on their foreign accounts — part of the temporary-resident package.
FAQ
What withholding does Australia take on interest and dividends?
Interest: 10% final. Dividends: 0% if fully franked, 30% (usually 15% by treaty) if unfranked. Royalties: 30% before treaty relief.
What happens when a non-resident sells Australian property?
The buyer must withhold 15% of the purchase price — with no minimum threshold since January 2025 — and the seller reconciles the real gain through an Australian return.
Figures: tax year 2025/26 (July–June basis), compiled from public sources. Not tax advice.