Latest News

Keeping you up to date

You may (or may not) recall, in the May 2013 Budget, the government announced that it wanted to introduce a 10% non-final withholding tax for foreign residents who sell Australian property above a certain threshold. Well, this legislation was passed in February 2016 and comes into effect from 1 July 2016. But I can hear you thinking ‘what impact will this have on me?’.

From 1 July, if you are an Australian resident who sells a property with a market value of $2 million or more you need to obtain a clearance certificate from the ATO, otherwise the seller is obligated to withhold 10% of the purchase price and pay it to the ATO.

This works vice versa – if you are the seller and the purchaser does not provide you with a clearance certificate from the ATO, you are required to withhold 10% of the purchase price and pay it to the ATO.

Confused? Hopefully your conveyancer and real estate agent have a handle on it. But if you need further information, the ATO website has further information. Or alternatively, feel free to contact our office and we can assist you.

General Advice

The information provided by Bentleys (Sunshine Coast) Pty Ltd does not constitute financial product advice and is for general information only. It is written without taking into account any individuals personal objectives, situation or needs, and is not intended as professional advice. Any person acting upon such information without receiving specific advice, does so entirely at their own risk. Please contact your Accountant to discuss your personal situation before relying on this information.