AU Australia property term
ATO Clearance Certificate
Australia-wide
Plain-English definition
An ATO certificate obtained by an Australian-resident property seller to confirm that a purchaser need not withhold foreign resident capital gains withholding from the sale.
Why this matters to a foreign buyer
For contracts from 1 January 2025, the purchaser generally withholds 15% of the property value if the Australian-resident vendor does not provide a valid certificate. The purchaser and settlement agent should check it before settlement.
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