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.

Contact your Advisor

Topics: ATO Updates

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