From the 1st July 2017, if you are selling a property, and the contract value is $750,000 or more, you are now required to obtain a Clearance Certificate issued by the Australian Taxation Office.
Failure to provide a Clearance Certificate will mean that the Purchaser will be obliged to retain 12.5% of the contract value at settlement and the Purchaser will be required to remit these funds to the Australian Taxation Office.
It is recommended if you are selling a property that is at $750,000 or above to obtain or apply for a Certificate upon listing your property. Certificates are valid for 12 months.
If the property has not sold within 12 months then a new Certificate will need to be applied for.
A Certificate will be required before settlement.
For more information please visit the Australian Taxation Office website here.
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