2017 Taxation Laws
Do I Require a Clearance Certificate when Buying Selling or Buying Property Worth over $750,000?
Here is what you need to know about the new tax rules regarding property. Commencing 1 July 2017, the Australian Taxation Office (ATO) is set to introduce new tax provisions (otherwise known as “rules”), which are primarily aimed at foreign sellers. However, these rules will ultimately impact all people selling property over $750,000 .
The new rules requires purchasers of property of $750,000 and over to retain 12.5% of the proceeds from the sale to be paid to the ATO in the absence of a Clearance Certificate.
If you are:
- an Australian resident; and
- selling property for $750,000 or more.
You need to apply for a Clearance Certificate prior to settlement to avoid the buyer withholding 12.5% of the sale proceeds and paying it to the taxman.
What Type of Property is Affected?
These new rules apply to all property, inclusive but not limited to
- Vacant Land
- Residential Property
- Commercial Property
- Strata Title
- Community Tiles Schemes
How Can One Obtain a Clearance Certificate?
At MCL Conveyancing we shall attend to all the paperwork necessary to obtain a Clearance Certificate for you prior to the settlement of the sale of your property to ensure that you receive all the proceeds of the sale on the day of settlement.