FAQS

What is capital gains tax withholding?

The Australian government requires people who buy residential property from non-tax residents to withhold 12.5% of the purchase price and pay it to the ATO.

If:

  • you are an Australian resident for tax purposes; and
  • you sell your property for more than $750,000;

you must provide apply for a CGT clearance certificate from the Australian Taxation Office (ATO). Every individual named on the title must provide a separate certificate.

Apply online at the ATO’s website and send us a copy of your certificate as soon as possible. It may take several weeks to issue, so don’t delay.

If:

  • you don’t provide a clearance certificate

or

  • you aren’t an Australian resident for tax purposes; and
  • you sell your property for more than $750,000;

the buyer must withhold 12.5% of the purchase price and remit it to the ATO.

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