Currently, if a property is being sold and the price is over $750,000, the seller is required, prior to settlement to obtain a clearance certificate from the ATO (Australian Taxation Office).

The certificate confirms that either:

• The seller is not a foreign resident and therefore is not required to pay their capital gains tax at settlement; or
• If the seller is a foreign resident, then they are required to pay 12.5% of the purchase price to the ATO at settlement.

What do the changes involve?

As of the 1st of January 2025, changes to clearance certificates came into effect, these changes involve:

• All sellers are required to obtain this clearance certificate from the ATO prior to settlement, regardless of the price the property is sold for; and
• If the seller is a foreign resident, the percentage increases from 12.5% to 15%.

Source: ATO