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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