Going to Market? Avoid This Costly Mistake! ATO Clearence Certificates Explained
Foreign resident capital gains withholding, Tax changes (FRCGW) from 1st January 2025
Did you know that without the correct clearance certificate, your buyer might be required to withhold a significant portion of the sale price for tax purposes? This could delay your settlement and create a huge amount of unnecessary last-minute stress.
Generally, most clearance certificates will issue within a few days. However, in some circumstances it can take up to 28 days to issue.
Imagine you've found the perfect buyer for your property, only to discover at the last minute that you haven’t arranged your ATO clearance certificate.
According to the Australian Taxation Office (ATO), All seller/s selling property in Australia regardless of the property value, will be required to provide an ATO clearance certificate to the buyer/s before settlement. Otherwise, the buyer is required to withhold 15% of the purchase price to be paid to the ATO at settlement. If you don't provide a clearance certificate to the purchaser at, or before settlement and an amount of FRCGW was withheld, you must lodge a tax return to get that amount credited to you – even if your income was below the threshold to lodge.
Don't risk delays or complications with your property sale.
Contact Fulton and Co Property today at [email protected] for a comprehensive fact sheet, we can also provide assistance with completing the necessary forms and ensuring a smooth transaction.
