CONVEYANCING
  • Home
  • About us
    • Halil Gokler
    • Celal Sahin
    • Randa Balbissi
    • Jennifer El-Asmar
    • Careers
  • Services
    • Buying property
    • Selling property
    • Other property transactions
  • Fees
  • Blog
  • Resources
    • Contract of sale of real estate
    • Section 32 vendor’s statement
    • Cooling off period
    • Stamp duty calculator
    • Stamp duty concessions
      • First home owners grant (FHOG)
      • First home owners concession
      • Principal place of residence concession (PPR)
      • Off the plan concession
      • Pensioner concession
    • Section 27 deposit release
    • Caveats
  • Contact us
  • 03 8590 8370
ATO clearance certificate
1 Jul 2017

ATO clearance certificate: foreign resident capital gains withholding payments

From 1 July 2016, foreign residents selling Australian property valued at over $2 million were required to pay a 10 per cent withholding tax. This means that you’ll need to obtain an ATO clearance certificate to prove you’re not a foreign resident. If you don’t do this, the purchaser must withhold 10 per cent of the purchase price at settlement price and pay this to the ATO.clearance certificate

However, as of 1 July 2017, the threshold has been reduced to $750,000. And the withholding tax rate has been increased from 10 per cent to 12.5 per cent. The previous threshold and rate continue to apply for any contracts entered into from 1 July 2016 and before 1 July 2017, even if they are not due to settle until after 1 July 2017.

You’ll need to apply for this ATO clearance certificate, prior to the settlement of your property, to recoup the full sale proceeds.

Asset types for which the ATO clearance certificate is required

Real property – taxable Australian real property with a market value of $750,000 or more:

  • vacant land, buildings, residential and commercial property;
  • mining, quarrying or prospecting rights where the material is situated in Australia;
  • the grant of a lease over real property in Australia.

Other assets

  • indirect Australian real property interests in Australian entities whose majority of assets consist of the above mentioned asset types;
  • options or rights to acquire any of the above asset types.

Exclusions to the ATO clearance certificate requirement

-> Real property transactions valued less than $750,00;

-> Transactions on an approved stock exchange; and

-> Transactions where the foreign resident vendor is under external administration of bankruptcy.

Validity of the ATO clearance certificate

The ATO clearance certificate is valid for 12 months from the date of issue, so the vendor can use it for multiple property sales.

The clearance certificate may be provided to the purchaser by the settlement date. The purchaser can then rely on the ATO clearance certificate as proof that they are not required to withhold any funds. Once the purchaser has received a copy of the ATO clearance certificate they have met their obligation, even if the vendor’s circumstances change during the settlement period.

All parties on the Certificate of Title will require an ATO clearance certificate. For example, joint tenants or tenants in common will need to fill out two forms. It is the vendor’s responsibility to provide the purchaser with the ATO clearance certificate and ensure it’s valid.

Contact us or use the following link to electronically obtain the clearance certificate.

We recommend that you apply for the clearance certificate at least 14 days before you require it so that your sale settlement is not delayed.

Share this:

Facebooktwitterlinkedinmail
Land Tax adjustment at settlement Client authorisation form Victoria

Related Posts

What is a Section 27 statement and should I sign it?

Conveyancing

What is a Section 27 statement and should I sign it?

Risk of making an unconditional purchase offer

Conveyancing

Risk of making an unconditional purchase offer

Verification of identity

Conveyancing

Verification of identity

Search content

Our Reviews

Haitch Conveyancing - Melbourne Property Conveyancers
Haitch Conveyancing - Melbourne Property Conveyancers
5.0
Based on 56 reviews
powered by Google
review us on
Alfred Tsang
Alfred Tsang
12:44 05 Jun 20
Celal has been a great supporting presence during our first home purchase. My partner and I had used Haitch Legal for... contract reviews and conveyancing needs during settlement of our home purchase. Despite having a million questions Celal was always happy to answer them and guided us through the process. Everything was made simple for us to understand which gave us the right confidence to successfully purchase and settle our first home!read more
Guner Hussein
Guner Hussein
13:04 27 May 20
Halil is a long time colleague of mine and I can testify to his professionalism and quality service. He is a smooth... operator who takes the guesswork out of your purchase or sale of property.read more
Becky Bolu
Becky Bolu
03:24 10 May 20
I have engaged Haitch Conveyancing based on their 5 star reviews and their quick response and transparent... pricing.Celal and Halil reviewed couple of contracts for me and always pointed out important matters and provided change feedback in timely and consistent manner. When I found the one, Celal has reviewed the contract very promptly and kept me updated with all the progress during settlement period. Everything was calculated correctly and he ensured all involved parties and agencies are also informed. I cant thank enough to Celal and Halil for their service and making this home buying process as easy as.I strongly recommend Haitch Conveyancing to anyone in Victoria, Australia for all property matters.read more
Liz Sutherland
Liz Sutherland
23:41 01 May 20
I utilised Haitch Conveyancing for my first property purchase and they were nothing short of brilliant. They were... thorough, prompt, always had time for me, and explained things in ways I easily understood. The whole team were amazing. I'd recommend them to anyone looking for conveyancing services in Melbourne, I wouldn't go with anyone else.read more
Henry Rosel
Henry Rosel
20:10 10 Mar 20
Halil and team were nothing short of amazing! Answering queries within hours and having everything settled on time and... without hiccup.Will be using Haitch for all future settlements. Thanks again.read more
Aloka Moghe
Aloka Moghe
00:56 07 Mar 20
We knew very little about conveyancing process but Halil explained the process in detail to us and made the process... painless. Katarina was excellent with communication keeping us up to date as it progressed.Would highly recommend Haitch Conveyancing.read more
Ali Han Yenisehirlioglu
Ali Han Yenisehirlioglu
03:10 03 Mar 20
Haitch Conveyancing has provided legal services for us for a property settlement in Melbourne. Their service was very... personalized, on - time and flawless. I was able to reach them whenever i had questions and each time they took their time to explain all the relevant details to me. I would never work with any other law office for conveyancing ever again. I recommend Haitch to every Victorian.read more
Bob Airlie
Bob Airlie
02:32 27 Feb 20
The team was fantastic, easy to deal with, everything was done electronically and via email. Can call at any time and... receive an answer to your questions.read more
KrisDavid DayClarke
KrisDavid DayClarke
08:14 26 Feb 20
The Team at Haitch Conveyancing took care of conveyancing in a friendly and efficient manner.
Maajed Durrani
Maajed Durrani
02:39 04 Feb 20
Halil & Katarina have assisted me with my property purchase. They are efficient & easily approachable. Replies to... email are very prompt. Highly recommended for their services.read more
Le Bui
Le Bui
10:40 10 Dec 19
Friendly, helpful and experienced team who is very approachable and supportive. Thank you for helping through with my... first home purchase!read more
Yun Bai
Yun Bai
00:14 10 Dec 19
The service was friendly and professionally. Highly recommended.
Aisar Khoder
Aisar Khoder
23:50 05 Dec 19
Halil assisted me with my property sale. He is very approachable and efficient with his work. Very highly recommended... and fairly priced.read more
Grant Taylor
Grant Taylor
10:04 26 Nov 19
Efficient team. They made our conveyancing process very easy
Simon Bosma
Simon Bosma
04:07 08 Aug 19
Halil helped us with the conveyancing for the recent purchase of our first home. A potentially stressful process was... made very simple, always picks up the phone and quickly responds to emails and a very reasonable fee. Highly recommended and would work with again.read more
Mursel Duz
Mursel Duz
03:07 05 Aug 19
Haitch Conveyancing act on my behalf as vendor. There were 2 townhouses both has settled on time perfectly. even though... there were some issues with the purchaser's bank etc. But Halil made it happened and both settled smoothly. Great service and highly recommended.read more
Reuben van Bemmel
Reuben van Bemmel
10:03 22 Jul 19
Halil has been immensely patient and helpful.
Stephanie Braham
Stephanie Braham
09:40 19 Jul 19
Haitch Legal did an excellent job taking care of our property purchase settlement. They made the whole process seem... seamless. Halil and Katarina were always patient and accessible and willing to answer any question I had. Very reasonably priced too. Will use again.read more
Yasin Ilanbey
Yasin Ilanbey
08:39 21 May 19
5 stars for Halil Gokler and his professional team of lawyers/conveyances.
clean connection
clean connection
03:02 01 May 19
Halil & Katarina are approachable with queries. We use them for all our business dealings. Would highly recommend to... all !!!read more
Joie Goman
Joie Goman
02:51 25 Apr 19
Highly recommended! Halil assisted us through our conveyancing and always replied to our emails and questions... promptly. His fees are also very reasonable and explained the conveyancing process to us. Halil and his team are very friendly and professional. We would use his service again.read more
Laura McMenamin
Laura McMenamin
03:59 14 Mar 19
Halil and Katerina were brilliant. Very responsive and patient with all our questions. Highly recommend.
samiamansourSM
samiamansourSM
11:04 08 Mar 19
Excellent service with very cordial staff . Thank you for your support and assistance.
Sam Watkins
Sam Watkins
05:59 20 Dec 18
Halil and Katrina of Haitch Conveyancing assisted us in buying our family home. They were friendly and helpful, and did... great work. We are very happy to recommend them.read more
Varun R
Varun R
04:56 10 Dec 18
Getting Halil Gokler to assist with our property purchase was the best decision we made. Halil's service and... professionalism went above and beyond his fixed quote for services. It paid off having a qualified lawyer provide this service as, when the conveyancers on the other side were incompetent and didn't settle on time, Halil was on hand with pragmatic advice to help us achieve a good outcome.read more
sinan demir
sinan demir
04:24 28 Nov 18
We use Halil and refer our clients to him. We get good feedback. Great service with prompt response times at a... reasonable price. Highly recommend Halil and his team at Haitch legal. Thank You Halil from Demir & Co Accountants.read more
Steve Williams
Steve Williams
00:03 21 Nov 18
We can't recommend Halil enough. He was fantastic in helping us with our first home settlement. We were late acquiring... his services in the process but Halil's service went above and beyond to sort everything within a tight time frame and patiently explained everything to us when we had many many questions! Made what was a tricky situation completely effortless. Highly recommend him.read more
Next Reviews
js_loader

Recent Posts

  • What is a Section 27 statement and should I sign it?
  • Risk of making an unconditional purchase offer
  • Verification of identity
  • Statement of adjustments
  • Sale of Real Estate Nomination Form

Categories

  • Conveyancing

Popular posts

  • Verification of identity (VOI)Verification of identity (VOI)
  • Licensed conveyancer or property lawyerLicensed conveyancer or property lawyer
  • Notice of AcquisitionNotice of Acquisition
  • Spousal property transfersSpousal property transfers
  • Lost Certificate of TitleLost Certificate of Title
Privacy | Contact Us | Service Areas | ABN 68 321 723 107
Copyright © 2022 Haitch Convey a division of Halil Gokler Lawyers
Brunswick | Bundoora | Carlton | Craigieburn | Eltham | Epping | Essendon | Glenroy | Greensborough
Kensington | Mill Park | Moonee Ponds | Niddrie | Preston | South Morang | Sunbury | Thomastown | Whittlesea | Coburg | Gladstone Park | Reservoir | Moreland