From 1 July 2017, if a person sells a property in Australia over the threshold of $750,000, then it is necessary for the person to obtain a clearance certificate from Australian Taxation Office in order to avoid the purchaser to withhold the 12.5% foreigner capital gain withholding tax from the purchase price.
The essential point in getting a clearance certificate is that whether the vendor is a tax resident or not at the time of disposal, and that falls back to also whether they have a valid tax file number, and whether the person has lodged the tax returns in the past 2 to 3 years.
If the person is unable to obtain the clearance certificate from the Australian Taxation Office, then at settlement, the purchaser needs to be withheld 12.5% of the purchase price and fill a special form to lodge the money to the ATO under the Vendor’s tax file number.
Please see below a simple tool to collect the data hence we would be able to process your clearance certificate with more ease.
Disclaimer: This is an estimation only, and is based on several assumptions, and EndureGo can not guarantee the completeness, accuracy of the computation. Please seek independent legal and tax advice from professional accountant and lawyers.