Are you selling a property for more than $2 million?
Many will now know that from 1 July, a 10% non-final withholding tax will apply to all Australian real property sales with a market value of $2 million or more, unless a clearance certificate is obtained.
From 1st July, 2016, vendors need to apply to the ATO for a clearance certificate, which will be issued to Australian residents. The clearance certificate is then provided to the purchaser prior to settlement. Foreign residents will be unable to obtain a clearance certificate.
Buyers need to know
Buyers need to withhold 10% of the purchase price and pay it to the ATO, unless the vendor provides the buyer with a clearance certificate. This applies for properties purchased for more than $2M.