ATO Tax Clearance Certificate

Here's the breakdown

How will I be impacted?

This is a requirement of ATO that, for any settlements over the value of 2 million dollars, the sellers are required to deduct 10% of the purchase price and, pay the same to ATO immediately.

Is there a way to avoid 10% payment?

Yes there is, Obtaining a Tax clearance certificate is the way to go. Any Australian resident and/or resident entities are eligible to apply for tax clearance certificate. Once, the same is applied for and obtained, it can then be presented to the vendor prior to settlement.

What about a non Australian resident?

An application to the ATO may be lodged by foreign residents asking for a variation of the 10% non-final witholding tax. Once, the ATO approves the variation request, the same can then be handed over to the purchaser prior to the settlement takes place. The sum paid to ATO will be considered as credit against any tax liability assessed in that financial year’s tax return application.

I want to apply for tax clearance certificate, how can I do that?

All you have to do for that is give us a quick call and we will be glad to offer you further assistance. It may be a complex task to undertake by yourself so why not, leave it on to us as professionals and you can enjoy the breeze in the meantime.

We’ve Answered Your Burning Questions Right Here

How much will it cost to obtain a tax clearance certificate?

It is expected to be a one-time payment of AUD $220 including GST. Our online application service is coming soon.

How long will it take to get my tax clearance certificate?

Your Australian tax clearance certificate or withholding variation can take anywhere from 5-28 days. More complicated issues could take longer than this time frame.

If I have to pay the withholding, when is the payment required to be made?

To pay the withholding to the ATO, the purchaser must complete a foreign resident capital gains withholding purchaser payment notification form so that they receive a payment reference number (PRN) and a PDF icon for a payment slip and barcode. This should be done before the day of settlement as the purchaser must pay the withholding to the ATO on or before the day the purchaser becomes the owner of the asset, and requires the PRN, payment slip and barcode to do this.

Who is liable to pay the withholding?

The purchaser is fully liable to withhold and pay the amount. If withholding does not occur when it should, the ATO will hold the purchaser liable.
For example Ben purchases a property from his friend Tom for $3,000,000. Ben has known Tom for many years and knows that Tom is an Australian resident so before settlement he does not bother to receive a clearance certificate from Tom. Ben at settlement pays Tom the full $3,000,000. The ATO holds Ben responsible to pay the 10% withholding to the ATO. Ben cannot find Tom and now has to pay an additional $300,000 to the ATO for withholding plus interest.

Nishant Kosambi

2 February 2023

Excellent work by Dayan, Chamie, Lihini and the entire team. They have always been very professional and helpful. They have taken care of my business and personal tax obligations for many years. They have also sought financial solutions for me. I am very happy with how thorough Dayan is with his work. Clear communication and regular follow-ups all the way. 5 stars for this gem of a person and his team.

Ajith Ratnarajah

6 November 2022

These guys are very professional. You get the best of both worlds of a personalised service from a company rather than from an individual accountant. Their processes are well established. I would strongly recommend Opulent for any small, big companies and high net worth individuals.

Da Bella

12 August 2022

I consider myself extremely luck to be introduced to Dayan and his team. I found the solution to my loan requirement in one meeting itself...Super efficient, friendly and humble....Opulent finance rocks!!

srikanth chintalapudi

11 July 2022

Dayan and his team did it again!!! They're proactive and provided timely advice in the recent sale of my investment property. They're advice saved me a lot of $$. Dayan and his team have been assisting me for the last 10+ years and they're always a lifesaver. Highly recommend!

Chamith Subasinghe

15 February 2022

The team at Opulent have been extremely helpful and resourceful in securing a home loan for me. The responses have always been quick and progress made quickly through the loan application process. The advice provided by Opulent is high quality and very useful, special call out to Ishara and Dayan who have been very knowledgeable, experienced and professional. I have recommended Opulent to my friends and they have had positive experiences as well. I would highly recommend giving Opulent a go!

Daniel C

26 December 2021

Highly recommend Opulent Accountants! I've been lucky enough to deal with Hasi, Dayan and Charlene and all three of them have been a great help. Thanks guys.

Sam

5 November 2021

Great Accountants and Mortgage Brokers. Prompt, Professional, Well-informed and Responsive.

Kesh Aryaratne

11 October 2021

The team at Opulent are professional, accessible, friendly and most importantly prompt in getting matters sorted. I have had the pleasure in dealing with both Dayan and Hasi who have guided me throughout and have been extremely helpful in getting my complex tax matters sorted on time and in a professional manner. Great work guys.

Mukesh S

29 September 2021

I was apprehensive to take the plunge into refinancing my loans. However Dayan and his team were very patient and made it a point to respond to all my queries and doubts . They must be leading busy lives themselves, however they were flexible and accommodative of my requests for meetings at close of business hours. Further I noticed that they are particular in their and the customer's paperwork. Along with Dayan, I'd like to call out the efforts put in by Ishara for ensuring a smooth transition. She has ben patient with my many queries and diligent in her handling of the paperwork. Thank you Dayan and team.