Usually it’s the Victorian government making new rules that affect Melbourne’s property market, but this time it’s the Australian Tax Office.
The ATO have kicked off 2025 with a new rule which will affect Australian homeowners who sell property from the 1st January, 2025.
Australian residents (for tax purposes) selling property in Australia are now required to provide the purchaser with a clearance certificate at or before settlement.
Previously, clearance certificates were only required for properties selling for $750,000 or above. Buyers were required to withhold 12.5% of the sale price and remit it directly to the ATO, if the seller did not provide a clearance certificate.
But as of the 1st January 2025, the ATO have removed the $750,000 threshold and increased the withholding rate to 15%.
Sellers can obtain a clearance certificate, valid for 12 months, through their conveyancer or solicitor or directly from the ATO.
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By Wendy Chamberlain
Copyright 2025 | All Rights Reserved
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent or Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.