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>>Does a 'non resident' of Australia pay CGT on capital gains derived from the Aussie sharemarket? <<

No - providing that he is a non resident he only has to take into consideration taxes paid in the country that he is residing.

>>If so, how is CGT assessed by the ATO?<,

For residents only -
Depends on whether it is CGT or Assessable Income! If you bought an asset and then sold this asset in the last 12 months then it is assessible income... if you held it longer than 12 months it is a Capital Gain and/or Loss. Any capital Gains made sine October 1999 are now taxed at half the rate then what they were previously (no indexing though and you can still take the option).

>>Does the broKer withold some of the proceeds until CGT liability has been established?<,

No that cannot happen but be careful with the 'withholding tax' issue as any funds repatriated offshore by a broker may be subject to a 15% withholding tax, if an international tax agreement is in place or 30% if no agreement is in place. On this issue you should ensure that the capital injected into the sharemarket is not subject to this tax but your profits are! Depending on the laws that exist in the country of residency you can then deduct this withholding tax from the tax payable on you total taxable income.

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