Changes on Buying Real Estate valued at $2mil plus

From 1 July, all buyers of Australian real estate, valued at $2m or over, must retain 10% of the purchase price and pay this amount as withholding tax to the ATO unless the seller produces an ATO clearance certificate or a variation notice prior to settlement.

The requirement means that unless a vendor demonstrates it is not a foreign resident then the purchaser must withhold and pay to the ATO the withholding amount.

Please see the fact sheet for real estate agents prepared by the ATO | here

Three online forms will be made available on the ATO website before 30 June 2016.
These are:

1. Clearance certificate application for Australian residents
2. Variation application for foreign residents and other parties
3. Purchaser payment notification