ATO Updates

ATO Update – New Property Tax Rule

By August 23, 2016 September 6th, 2019 No Comments
ATO Update - New Property Tax Rule

We take a closer look into the latest update from the ATO.

The ATO has introduced a 10% withholding rate on payments made to foreign residents under contracts entered into on or after the 1 July 2016 who dispose of certain taxable Australian property valued at $2 million and over.

The legislation was introduced to ensure non residence met their capital gains tax obligations on Australian property.

This means for Australian residence who are selling property over $2 million will need to obtain a clearance certificate from the ATO. The certificate will confirm that you are in fact an Australian resident and that the 10% withholding does not apply.

Clearance certificates are valid for a 12 month period, thus we would encourage those with a selling applicable property not to wait until the last minute to ensure that the withholding rules don’t apply.

For further details on this matter please contact your advisor.



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