ARTICLE · 14 SEPTEMBER 2025

Does The ATO Know Your Name?

Clifford Gouldson Lawyers

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An essential part of many property sales has been obtaining an ATO Clearance Certificate to avoid a withholding payment to the Australian Taxation Office at settlement.

AustraliaTax

Patrick Gellatly

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Are you considering selling property in Australia? If so, you need to make sure the ATO knows your name!

Since 2016, an essential part of many property sales has been obtaining an ATO Clearance Certificate to avoid a withholding payment to the Australian Taxation Office at settlement. This requirement was introduced by the Federal Government as a measure to ensure that foreign investors paid capital gains tax when disposing of land in Australia.

As of 1 January 2025, this requirement was amended to extend to all sales of property in Australia (previously, it was only required for those above a certain monetary threshold that was changed twice). This means that if a seller is unable to provide an ATO Clearance Certificate before settlement, the buyer is required to withhold 15% of the purchase price and direct this amount to the ATO.

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