Kazi Portolesi Lawyers Logo

(02) 9728 3366

1300 733 039

  • Home
  • About Us
    • Our Team
    • Career
  • Legal Services
    • Personal Injury
    • Trusted Family Law Firm in Sydney
    • Commercial Law & Litigation
    • Criminal Law
    • Property & Conveyancing
    • Commercial Property and Finance
    • Wills & Estate Planning
  • News
    • Civil Litigation
    • Contracts
    • Criminal Law
    • Family Law
    • Personal Injury
    • Property
    • Wills and Estates
    • General
  • For Clients
    • Your Secure Documents
  • Contact Us

Buying or Selling Property over $2 million? – New Rules Apply From 1 July 2016

June 6, 2017 by Kazi Portolesi Lawyers

Buying or Selling Property over $2 million? As of 1 July 2016, the sale of real property with a market value of $2 million or over will attract a 10% non-final withholding tax unless a clearance certificate from the Australian Taxation Office (ATO) is obtained.

Selling?

Australian residents will need to obtain a Clearance Certificate from the ATO and provide it to the purchaser prior to settlement to avoid the tax implication.

On the other hand, foreign residents may apply to the ATO for a variation to the 10% non-final withholding tax. Once the variation has been approved, the variation notice will need to be provided to the purchaser prior to settlement.

Vendors may claim a credit for the withholding amount paid to the ATO against the final tax assessment in their income tax return.

Purchasing?

If you are purchasing a property with a market value of $2 million or above, the ATO will require you to withhold 10% of the purchase price until settlement. Thereafter, you will be required to pay it to the ATO.

This will not apply if the vendor provides you with a Clearance Certificate.

The withholding tax may be varied to less than 10% if the vendor provides a variation notice from the ATO prior to settlement.

The purchaser will be required to pay the amount withheld at settlement to the ATO.

If you have any questions, please do not hesitate to contact our Conveyancing team on (02) 9728 3366.

Filed Under: Property

ONLINE ENQUIRY

Our Advantages

  • After Hours Appointments
  • Fixed Fees
  • Free Initial Consultation
  • Multilingual
  • Reliable
  • Efficient
  • Use Plain Language

Legal Services

  • Personal Injury
  • Trusted Family Law Firm in Sydney
  • Commercial Law & Litigation
  • Criminal Law
  • Property & Conveyancing
  • Commercial Property and Finance
  • Wills & Estate Planning

Contact Us

  • Level 1, 113-115 The Crescent
    Fairfield NSW 2165
  • Suite 416/49 Queens Road
    Five Dock NSW 2046
  • (02) 9728 3366
  • (02) 9724 4178
  • 1300 733 039

Copyright © 2023 · Privacy Policy · Log in

Cleantalk Pixel