Capital Gains Withholding: Real Estate Agents

Since July 2017 an Australian resident selling real estatate that has a market value greater than $750,000 will need to apply for a clearance certificate. This application is to the ATO and attempts to ensure that amounts are not withheld from sale proceeds.

When a valid clearance certificate is absent at settlement, and has not been previously presented, 12.5% of the purchase price must be withheld by the purchaser. This 12.5% is to be paid to the ATO.

To acquire a clearance certificate, a vendor that is a Australian resident (or their representative) must complete an online clearance certificate application for Australian residents form. This form is available at Provided the vendor is assessed as an Australian resident a certificate will be issued electronically. This usually occurs within days of the application.

This capital gains withholding only applies to contracts entered into after the 1st of July 2017.

#CapitalGains #CapitalGainsWithholding #RealEstate #RealEstateAgents #PropertySettlement #clearancecertificate

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The Great Bean Counters are Registered Tax Accountants offering accounting services to Brisbane’s Western Suburbs including but not limited to: Moggill, Chapel HillKenmore, Fig Tree Pocket, Indooroopilly, Upper Brookfield, Brookfield, Pullenvale, Pinjarra Hills, Bellbowrie, Anstead, Mount Crosby, Kholo, Kenmore HillsKarana Downs, Indooroopilly, Taringa and Toowong.

We are a Brisbane based accounting firm.

*Liability limited by scheme approved under Professional Legislation

 ABN: 19 617 763 836