{"id":100134,"date":"2025-01-04T13:51:46","date_gmt":"2025-01-04T02:51:46","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=100134"},"modified":"2025-01-04T13:51:49","modified_gmt":"2025-01-04T02:51:49","slug":"atos-tax-shake-up-aussie-sellers-face-big-changes-starting-january","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/atos-tax-shake-up-aussie-sellers-face-big-changes-starting-january\/","title":{"rendered":"ATO\u2019s Tax Shake-Up: Aussie Sellers Face Big Changes Starting January"},"content":{"rendered":"\n<p><strong>Australians planning to sell property in 2025 should take note of a significant tax rule change that could affect their finances if not managed carefully.<\/strong> From <strong>January 1, 2025<\/strong>, all property sellers in Australia must obtain a <strong>clearance certificate<\/strong> from the Australian Taxation Office (ATO) to confirm their residency for tax purposes. Without this certificate, buyers are required to withhold <strong>15% of the sale price<\/strong> and remit it directly to the ATO.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Has Changed?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Removal of the $750,000 Threshold<\/h3>\n\n\n\n<p>Previously, the <strong>foreign resident capital gains withholding (FRCGW)<\/strong> rules only applied to properties valued at $750,000 or more. This threshold has now been removed, meaning <strong>all property sales, regardless of value<\/strong>, are subject to the new rules.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Increased Withholding Rate<\/h3>\n\n\n\n<p>The withholding rate has been raised from <strong>12.5% to 15%<\/strong>, making it even more critical for sellers to have their clearance certificate in place to avoid delays in accessing their funds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Financial Impact<\/h2>\n\n\n\n<p>For context, with the <strong><a href=\"https:\/\/en.econostrum.info\/au\/january-1-changes-what-you-need-to-know-about-welfare-wages-and-costs-in-2025\/\" target=\"_blank\" data-type=\"post\" data-id=\"100100\" rel=\"noreferrer noopener\">average Australian home<\/a> valued at $814,837<\/strong>, the <strong>15% withholding<\/strong> would amount to approximately <strong>$122,225<\/strong>. Sellers without a clearance certificate would need to wait until they file their next tax return to claim this money back.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Obtain a Clearance Certificate<\/h2>\n\n\n\n<p>The process for getting a clearance certificate is straightforward and can be done through the <strong><a href=\"https:\/\/www.ato.gov.au\/\" target=\"_blank\" rel=\"noreferrer noopener\">ATO website<\/a><\/strong>. Key details include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cost<\/strong>: Free.<\/li>\n\n\n\n<li><strong>Validity<\/strong>: Certificates are valid for 12 months, so you can apply well in advance.<\/li>\n\n\n\n<li><strong>Processing Time<\/strong>: Most applications are processed within a few days, but in some cases, it may take up to <strong>28 days<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Expert Advice<\/h3>\n\n\n\n<p><strong>Belinda Raso<\/strong>, director of Tax Invest Accounting, encourages property sellers to get organised early.<\/p>\n\n\n\n<p>\u201cThis is free to organise; it just needs to be in the vendor\u2019s name, and it\u2019s valid for 12 months,\u201d she explained. \u201cNormally, this is handled by your conveyancer or solicitor, but why not get organised now?\u201d<\/p>\n\n\n\n<p>Additionally, having a certificate in hand does not obligate you to sell your property if you later change your mind.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Dates and Applicability<\/h2>\n\n\n\n<p>The updated rules apply to <strong>contracts signed on or after January 1, 2025<\/strong>. Sellers entering into agreements before this date will not be affected by the new requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why This Change?<\/h2>\n\n\n\n<p>The <strong>foreign resident capital gains withholding rules<\/strong> are designed to ensure that non-residents fulfill their tax obligations when selling property in Australia. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Big changes are coming for Aussie property sellers this year, with a major tax rule overhaul starting in January. A simple oversight could see 15% of your property sale price withheld by the ATO. The good news? There\u2019s a way to avoid it\u2014but it requires action. Here\u2019s what every seller needs to know before signing a contract.<\/p>\n","protected":false},"author":5,"featured_media":100139,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29,15],"tags":[],"class_list":["post-100134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","category-housing","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=100134"}],"version-history":[{"count":6,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100134\/revisions"}],"predecessor-version":[{"id":100141,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100134\/revisions\/100141"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/100139"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=100134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=100134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=100134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}