Capital Gains Withholding Provisions change as of 1st July 2017, in respect of both the sale price threshold and the withholding percentage.
For the sale of all properties where:
– The sales contract is entered into on or after 1st July 2017 and
– The contract price is $750,000 or more (previously it was $2,000,000)
The Buyer must withhold 12.5% (previously it was 10%) of the purchase price and pay such monies to the Australian Taxation Office (ATO) on or before settlement, unless the Vendor has obtained a Tax Clearance Certificate from the ATO.
So essentially in a nutshell, you are selling a property above $750,000 – ensure you get a tax clearance certificate before settlement occurs.
