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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 $165 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.

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Moumita Ghosh
Moumita Ghosh
2020-11-18
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We've been meeting Dayan for years now and he is great with his advice and is very knowledgeable and pragmatic. We recently used his services to get the home loan for our house and he and his team went above and beyond to get us the best possible deal. Ishara in his team was super communicative and responsive in following through and made the process very easy for us. Highly recommend them!
Cara Neela
Cara Neela
2020-10-24
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Dayan and Hasi are wonderful, wouldn’t hesitate to recommend them! They went through all with a fine tooth comb to ensure all was correct. Thanks to you both and the Opulent team!
Jason Barry
Jason Barry
2020-09-29
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I was looking for a different accountant and was recommended to Opulent Accountants. I have been blown away with there service. I wish I moved accountant sooner. Platinum Plumbing Enterprises P/L
Afshin Koohestani
Afshin Koohestani
2020-09-10
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Uditha Illeperuma
Uditha Illeperuma
2020-09-08
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Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.
Dinesh Fernando
Dinesh Fernando
2020-09-03
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Very happy with the service provided in getting my tax returns done. Mr. Dayan is very helpful and professional and has extensive knowledge in his field of expertise. Highly recommend if you are looking for a hassle free and prompt service.
Ronald Turner
Ronald Turner
2020-07-16
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Opulent were absolutely fantastic to deal with, they are competitively priced and incredibly proactive and friendly. For me I have been much better off using their fantastic services as opposed to doing tax returns myself. Sum was amazing, incredibly knowledgable and super friendly I'll certainly be back with Opulent next year
Milinda Wickramasinghe
Milinda Wickramasinghe
2020-07-05
Verified review
Opulent team has been fantastic and it has been truly a pleasure dealing with the team for more than 10 years. Dayan and Ishara have gone above and beyond to assist and communicated with me even when I was overseas. Excellent service has being provided in a professional and timely manner. I would highly recommend the team.
Chami Ranaweera
Chami Ranaweera
2020-04-28
Verified review
I have been working with Dayan last 9 years. All of my loans, refinance and tax are done through Opulent.Dayan and his team including Ishara are very helpful and easy to deal.
Edmund Lobo
Edmund Lobo
2019-12-02
Verified review
We were new entrants to the cattle farming scene. All the rules and regulations surrounding primary production can be very confusing. The team at Opulent Accountants walked us through all the steps, set up the necessary ABNs and Company / Trust accounts, filed the related pending BAS and Tax returns, and is currently keeping us up-to-date with all ATO related transactions. We recommend them highly to all.