From January 1, 2025, all Australian residents (for tax purposes) selling property in Australia—whether a homeowner or investor, an individual or a company —must comply with the new ATO Capital Gains Tax (CGT) withholding rules. Here's everything you need to know:

Who Does This Apply To?

  • Any Property Seller: Whether you’re selling residential or commercial property, if you’re a seller, you’re affected by these changes.
  • Individual or company: If you are an Australian resident (for tax purposes) the selling entity or person must obtain a clearance certificate.

What’s Changing?

  • Clearance Certificate Requirement: Sellers must now obtain a CGT withholding clearance certificate from the ATO before settlement.
  • 15% Withholding Without It: If you don’t get the clearance certificate, the purchaser will remit 15% of the sale price to the ATO at settlement.

Why Does This Matter to You?

  • Avoid Unexpected Withholding: If you don’t get the certificate, a hefty 15% will be taken out of your sale proceeds.
  • Faster, Smoother Sale: With the certificate in hand, your sale can proceed without delays or extra complications.
  • Potential Refund: If too much is withheld, you’ll have to wait for a refund from the ATO after your tax return is processed (which will not be done until the end of the financial year)

What Should You Do?

  • Apply for the Certificate Early: Don’t wait until the last minute. Apply for the CGT clearance certificate as soon as you decide to sell. We can assist with this.
  • Selling your property? Let us help you navigate the new rules and ensure a smooth, hassle-free sale. Contact us today!

 

Disclaimer: This is not financial advice and we do not give financial advice. You should speak to your accountant or financial advisor.

Disclaimer: This advice is general in nature and is not intended to be legal advice.

If you would like legal advice, please call our office on (07) 5619 0440 and we would be pleased to assist you.

9 Feb 2025 Carley Ronan

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The team at Holt Ronan Lawyers have managed multiple property settlements for us and have been wonderful to deal with. Trish was wonderful at explaining things to us, incredibly prompt with her responses and made sure we were informed at every step. I would strongly recommend Trish and Holt Ronan Lawyers to help with your conveyancing.

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Jan 2024

 

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Aug 2023

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Gold Coast Art School
Feb 2024

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