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