• From January 1, 2025, to December 31, 2024, a rate of 12.5% applies to properties 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 was introduced in 2016, many misconceptions persist within the community. Many real estate agents fail to educate their clients about obtaining this certificate, and in many cases, conveyancers and solicitors also neglect to inform clients.
• This system is designed to verify your Australian Residency Status, and the purchase should not incur any discount at settlement because you are not a foreign resident.
• This is a substantial 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 the online application.
• As the certificate lagsts 12 months, once you decide to sell your property, apply online immediately to avoid headaches.
• Think about, Sale price $1Million, 15%= $150,000. It is a lot of money, and if you are eligible for a discount, the only way to get the money back is when you lodge your tax return for the year. This could easily be another year.
• Link to apply online: Foreign resident capital gains withholding clearance certificate application
• If you are still in doubt, contact us by email.