New rules for selling property over $2 million

New rules for selling property over $2 million

From 1 July 2016, new rules will apply to sales of taxable Australian property (e.g., real estate) with a market value of $2 million or above.

A 10% non-final withholding tax may be applied to all contracts to sell such property entered into on or after 1 July 2016.

Australian resident vendors selling such property  will need to obtain a clearance certificate from the ATO prior to settlement to avoid the 10% non-final withholding tax.