ATO Capital Gains Clearance Certificate for Sellers
NOTICE TO ALL SELLERS OF PROPERTY IN WESTERN AUSTRALIA
RE: FOREIGN RESIDENT CAPITAL GAINS WITHOLDING
The Government has set new regulations for all property sales:
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- For contracts dated after January 1, 2025: An ATO Clearance Certificate is required for all sellers listed on the Certificate of Title, regardless of the sale price. Each seller listed on the title must provide an ATO Clearance Certificate before settlement. Ensure your name on the certificate matches the title exactly. If it doesn’t, please contact your accountant or the ATO to urgently update it. Settlement agents are unable to assist to complete this application for you. If you need help, our associated law firm, Philipoff Legal, can assist with the application for a fee of $330.00 (including GST) per registered owner on the title. Should you wish to use their services please contact them at info@philipofflegal.com.au
- For properties valued over $750,000 with contracts dated before January 1, 2025: Each seller listed on the title must provide an ATO Clearance Certificate before settlement. The same name-matching rule applies. If you need assistance, Philipoff Legal can help at the same rate listed above. You can obtain the ATO Clearance Certificate online here: https://www.ato.gov.au/FRWT_Certificate.aspx. Each seller which appears on the Certificate of Title must arrange their own certificate. If we do not receive the certificate before settlement, the buyer’s representative will deduct 15% of the sale price for contracts dated after January 1 2025, or 12.5% of the sale price for contracts dated before 1 January 2025 and valued over $750,000.00. This amount will be paid directly to the ATO.
Please forward a copy of your ATO Clearance Certificate to us before settlement.
For more information, visit: Foreign resident capital gains withholding overview | Australian Taxation Office
If required, the paper application form can be accessed here: ATO Capital Gains Withholding
For more information to update names: Update your name | Australian Taxation Office
