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The ATO cat amongst the blue chip pigeons

Discussion in 'General Property Chat' started by euro73, 25th May, 2016.

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  1. euro73

    euro73 Well-Known Member Business Member

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  2. Ted Varrick

    Ted Varrick Well-Known Member

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    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?
     
  3. wogitalia

    wogitalia Well-Known Member

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    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.
     
  4. Beanie Girl

    Beanie Girl Well-Known Member

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    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.
     
  5. euro73

    euro73 Well-Known Member Business Member

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    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.
     
  6. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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  7. Jennifer Duke

    Jennifer Duke Well-Known Member

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    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
     
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