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Non Residents are liable for capital gains only if a CGT asset has a connection with Australia (which includes shareholding of a public listed company which is 10% or more of the issued capital). I think my remarks were a broad brush approach and i apologise.

Please refer below in regard to dividends. This may explain there treatment a bit better.

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"Any payment of the unfranked dividend by BHP should only be made after a withholding tax is applied to the full unfranked dividend and the balance remitted to a non resident.(21) As his residency status is in another country and that country's taxation laws will determine his tax payable on the unfranked dividend and the other income earnt is subject to the general rates of tax for non-residents (22). This is not the onus of the Australian Taxation Office. The general rate of withholding tax is 30% (23), while non residents; whose country has concluded a comprehensive double taxation agreement; are subject to a 15% withholding tax. (24)

Should a non resident have received a franked dividend or partially franked dividend then the dividend will, to the extent that it has been franked, be exempt from the withholding tax (25), such income will still be excluded from assessible income as if it had been subject to a withholding tax." (26)
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21: Section 128(B)(1) Income Tax Assessment Act 1997 unless an exemption applies under Section 128(B)(3) Income Tax Assessment Act 1997
22: Tax Rates and Tables 1998-99 Non residents, Australian Tax Handbook 1999 (ATP 1999) p1977
23: Regulation 135 – 136 of the Income Tax Regulations
24: Ibid
25: Section 128B (3) (ga) Income Tax Assessment Act 1997
26: Section 128D Income Tax Assessment Act 1997


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