Changes to ATO Clearance Certificate Requirements for 2025

As of 1 January 2025, significant legislative changes have come into effect regarding ATO Clearance Certificates that all property sellers need to be aware of.

Under the updated rules, property sellers are now required to provide an ATO Clearance Certificate prior to settlement, regardless of the property's sale price. Failure to provide this certificate will result in a 15% withholding tax being deducted at settlement—a substantial amount that could impact your financial outcomes.

To avoid delays or complications, it's advisable to consult your conveyancer as soon as possible. Your conveyancer can assist you in applying for the certificate, either upon receiving a contract or even earlier. Applications can also be submitted directly through the ATO Clearance Certificates website, streamlining the process.

Keep in mind that the ATO may take up to 28 business days to process your application. Planning ahead and submitting your application early is key to ensuring a smooth and stress-free settlement.

Thank you to Rebecca Petroff from Sunstate Conveyancing for sharing this very important information with us.