Are you aware you need to apply for an Australian Taxation Office Foreign Resident Capital Gains Withholding Clearance Certificate?
All sellers of real property must now obtain a Foreign Resident capital gains withholding clearance from the ATO for contracts entered into from 1 January 2025.
If you do not provide the Buyer of your property with a foreign resident capital gains withholding clearance certificate prior to settlement, then the ATO imposes an obligation on the Buyer to withhold 15% of the contract price and pay it to the ATO at settlement.
To avoid a nasty surprise at settlement, it is important to apply for a clearance certificate either when you place your property on the market or as soon as a contract is signed as it can take up to 28 days to receive the certificate.
Contact our friendly conveyancing team on 1300 285 888 for more information.
