New threshold for capital gains withholding
From the 1 July 2017, all transactions involving the disposal of real property with a market value of or over $750,000, will need the consideration of whether a clearance certificate is required.
Where a foreign resident disposes of Australian real property that has a market value of and over $750,000, the purchaser is required to withhold 12.5% of the purchase price and forward it to the ATO, unless the seller provides a variation. However, Australian resident vendors who dispose of Australian real property with a market value of $750,000 or above will need to apply for a clearance certificate from the ATO to ensure amounts are not withheld from their sale proceeds.
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