Important taxation information

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 above, unless a clearance certificate is obtained.

Selling property with a market value of $2 million or above:

• Australian residents – need to obtain a clearance certificate from the ATO, and provide it to the purchaser prior to settlement.
• Foreign residents – may apply to us for a variation to the 10% non-final withholding tax, and provide this notice to the purchaser prior to settlement. The amount remitted to the ATO will be allowed as a credit against tax assessed in that year’s tax return.

Purchasing property with a market value of $2 million or above:

• You need to withhold 10% of the purchase price and pay it to the ATO unless the seller provides you with a clearance certificate.
• You may vary down the 10% non-final withholding tax if the seller provides you with a variation notice from the ATO prior to settlement.

Conveyancers will receive a detailed education guide in the coming weeks.