If you’re planning to sell your property, there’s an important change to keep in mind. As of January 1, 2025, the Australian Tax Office (ATO) now requires property sellers to obtain a clearance certificate to confirm their residency status before completing the sale. This is part of a broader effort to ensure tax compliance and transparency in property transactions.
If a seller doesn’t provide the clearance certificate, the buyer will be required to withhold 15% of the sale price and send it directly to the ATO, which could be a significant amount. The ATO advises sellers to apply early, as most certificates are issued within a few days, but some may take up to 28 days to process. Fortunately, the certificate is valid for 12 months, meaning vendors don’t need to wait until they’ve signed a contract to apply.
To make sure everything goes smoothly, it’s a good idea to consult with a tax professional or legal advisor. Taking care of this step will help ensure a hassle-free sale and keep things on track.
