ATO to Target $2m+ Properties- 10% to be Withheld

"The property industry will come under greater scrutiny from the ATO this year with new rules placing sales transactions above $2 million in its sights.

From next month, buyers of a property worth more than $2 million – residential or commercial – will have to withhold 10 per cent of the price. The buyer will be required to give this sum to the ATO unless they get a special tax clearance certificate from the vendor.

The move is designed to crack down on foreign property owners who sell Australian homes without paying capital gains tax, with the ATO transferring some of the responsibility to purchasers.

The ATO explains: “All Australian resident vendors of $2 million-plus properties will be classified as overseas investors unless they get a special tax clearance to confirm a 10 per cent withholding amount does not need to be withheld from the transaction.

“The vendor needs to provide a clearance certificate to the purchaser by settlement, or the purchaser will be required to withhold 10 per cent of the sales price and pay this to the ATO.”

ATO Guidlelines;

• Clearance certificates are valid for 12 months from issue.
• The form is available on the ATO website.
• There is no fee for clearance certificate applications.
• Penalties and interest apply where vendors make false declarations to the ATO, or where the purchaser fails to withhold and remit 10 per cent of the purchase price when they are required to

ATO clawing in capital gains tax with new rules for $2 million-plus properties

Cmon guys, I'm not temporarily giving up $650k just to sell my batchelor pad

 

Guess I will have to keep this in mind whenever I sell any of my 30 properties.

Also for @datto who will have even more paper with the Sydney prices!

 

That swimming pool and outdoor setting is worth more than my house in the Druitt.

 

You could always extend the carport on the moby home couldn't you?

That'd a dd a few slabs worth to it's value.

 

Maybe you should put in an indentical swimming pool and outdoor setting. The McGr ass holes might be able to get you twice as much.

 

Hmmm....what about a cardboard parapet wall to make an old 3 bedda fibro house look like a 2 storey?

Some people buy without inspecting lol.