From 1 January 2025, the Australian Tax Office (ATO) introduced important changes that affect anyone selling real estate in Australia—whether you’re a foreign resident or not.
Here’s what you need to know:
What’s New?
- Clearance Certificates Now Required for All Sales
Previously, only properties valued at $750,000 or more required a Clearance Certificate. That threshold is gone.
Now, every property sale—no matter the price—requires a Clearance Certificate from the ATO. - Increased Withholding Rate
If you don’t provide a valid Clearance Certificate to the buyer before settlement, they are legally required to withhold 15% of the sale price (up from 12.5%) and send it to the ATO.
What’s a Clearance Certificate Anyway?
It’s an official document from the ATO that confirms you are not a foreign resident for tax purposes. Even if you’re an Australian resident, you still need to apply—it’s the only way to ensure no withholding applies at settlement.
Frequently Asked Questions
Can I apply before signing a contract?
Yes! You can apply in advance—handy if you’re planning to sell at auction or list your property soon. Certificates are valid for 12 months.
Selling more than one property?
You only need one certificate if all properties are under the same ownership name. If you own properties under different names (e.g., one personally, one via a company), you’ll need separate certificates.
How long does it take?
Certificates often come through in 24 hours, but the ATO advises allowing up to 28 days. Delays can happen if:
- You haven’t lodged a tax return in the last 2 years
- Your name with the ATO doesn’t match the name on your property title
- Your residency status is unclear or changing
We Can Help
We apply for Clearance Certificates for clients every day and know how to get them done quickly and accurately. Prefer your accountant to handle it? No problem—we’re happy to work with them.
Important: We don’t provide tax advice. If you’re unsure about your tax or residency status, please speak to your accountant before applying.
