From 1 July 2017, all Australian residents selling real estate for more than $750,000 will need to apply for a ‘Clearance Certificate’ from the ATO.
The Vendor must attach this Certificate to the Sale Contract or serve it upon the Purchaser prior to completion.
If the Vendor does not do this, the Purchaser must withhold 12.5% of the Price and pay this to the ATO.
It may take up to 28 days to obtain a Clearance Certificate, so if you are considering selling or auctioning your property for more than $750,000, then you should make an application as early as possible
Clearance Certificates are valid for 12 months.
To apply for a Clearance Certificate, your clients should click here.