Capital gains withholding clearance certificate
All contracts entered into from 1 July 2017 with a contract price of $750,000.00 and above will require each individual Seller noted on the title to obtain an ATO Capital Gains Withholding Clearance Certificate prior to settlement. Please attend to this as soon as possible it can take up to 14 days to process from being submitted.
In the event a seller does not obtain a clearance certificate and provide it to the settlement agent prior to settlement, the buyer is obligated to withhold 12.5% of the purchase price of the property and pay that amount to the Australian Tax Office.
For trusts and Superannuation funds, If the entity that has legal title to the asset is the trustee, then it is the trustee, in their own capacity as either a company or an individual, that should apply for the clearance certificate using their own tax file number and/or ABN as the identifier.
The fastest way to obtain the certificate is to apply online. If you have printed off a Capital Gains withholding clearance certificate application please complete one per individual and send to:
Australian Taxation Office
PO Box 3006
Penrith NSW 2740
Reminder: Each Registered Owner on the title must submit their own application. Once you receive the clearance certificate forward it to our offices.
For more information please go to https://www.ato.gov.au/Forms/capital-gains-withholding-clearance-certificate-application-online-form-and-instructions—for-Australian-residents/