As and from 1 July 2016, all Australian Vendors of real estate with a market value of $2million or more must apply for a clearance certificate from the Australian Taxation Office and provide this to the Purchaser on or before settlement.
If a clearance certificate is not available, then the Purchaser must deduct and remit 10% of the purchase price to the Australian Taxation Office, on settlement.
Following is the relevant online application for a clearance certificate https://www.ato.gov.au/FRWT_Certificate.aspx
We note the clearance certificate is valid for 12 months and must be valid at the time it is provided to the Purchaser (i.e. as at the date of exchange of Contracts).
Contact Foulsham and Geddes today to receive tailored advice in relation to capital tax gains when purchase or sale a property.
