• Up to and including 31 December 2024, a rate of 12.5% applies to property valued at $750,000 or more.
• On and after 1 January 2025, a rate of 15% applies to the value of all property.

In Summary,

• Although, this system entered into effect long ago, in 2016, there is still a lot of misconceptions between the community, many Real Estate Agents do not educate the clients to get this certificate, nor Conveyancers and Solicitors don’t inform the clients in many cases.
• This system is to prove you are Australian Resident and the purchase should not discount any of the money at settlement because you are NOT a Foreign Resident.
• This is a huge financial impact, if you don’t provide the certificate per owner in the title before settlement.
• The earlier, the better to apply for it, time is crucial and ATO won’t issue it quickly, it takes 28 days from application online.
• As certificate lasts 12 months, once you make the decision to sell your property, apply online immediately and you will avoid headaches.
• Think about, Sale price $1Million, 15%= $150,000. It is a lot of money and if you are discounted, the only way to get the money back is when you lodge your tax return for year. This could be easily another year.
• Link to apply online: Foreign resident capital gains withholding clearance certificate application
• If you are still in doubt, contact us by email.