The ATO cat amongst the blue chip pigeons

ATO quickly wields its big new property tax

 

Is your place worth $2mil and you want to sell it?

Get a certificate.

The linked article seems to indicate the vested interests don't seem to agree with it.

What's new?

 

Yeah it's apparently going to be very easy to get the certificate and it only applies to properties over $2m so it's not going to be very common at all.

One of those things that's going to add 5 minutes to the property settling in most cases.

 

Domain article here
Selling up for more than $2 million? Have some red tape with that

The difference between the 2 articles is that in the Domain article, it says the buyer withholds 10% of the purchase price - to be sent to the ATO.
In the article quoted by OP, it says the seller must deduct ten (10) percent from the purchase price which is immediately paid to the ATO.

if fail to attain special tax clearance certificate

dunno which is right.

 

You dont live in Sydney $2 Million captures a fairly sizeable number of properties here

Anyway- just posted this for interests sake... a little awareness for those who didnt know about it already. I had certainly not been aware of it, as Im sure is the case for many others.

 

It will also effect the property options as creates a getaway for vendors.
New $2m witholding tax rules create 'get out' loophole for vendors
@Xenia comments ?

 

Straight from the ATO:

Assistant Commissioner Malcolm Allen said Australian residents who are selling a taxable Australian property with a market value of $2 million or more need to obtain a clearance certificate from the ATO, to confirm a 10 per cent withholding amount does not need to be withheld from the transaction.

“The seller needs to provide a clearance certificate to the buyer by settlement, or the buyer will be required to withhold 10% of the sales price and pay this to the ATO,” Mr Allen said.

“We encourage all Australian residents who are looking to sell property with a value of $2 million or more to apply for a clearance certificate as early as possible.

“It is easy to obtain a clearance certificate. The form is available to download through our website, and there is no fee for clearance certificate applications.”

Clearance certificates are valid for 12 months from issue, and must be valid at the time it is made available to the buyer.

New tax rules for property sales over $2 million | Australian Taxation Office