In this blog/video we discuss the brand NEW ATO LAW that started on 01 January 2025 that affects EVERY property transaction in QLD! 

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Hi everybody - George Sourris, Empire Legal.

Today's topic: NEW 2025 ATO Clearance Certificate Updates for ALL QLD Property Transactions!

Hey guys, just wanted to kick off 2025 with a brand new piece of content all around ATO clearance certificates.

The foreign resident capital gains withholding clearance certificate rules changed on the 1st of January 2025. So right now, Australian residents selling a property must provide a clearance certificate  up until settlement, otherwise 12.5% of the purchase price is withheld from the property sale, where the value of the property is $750,000 or more. Well, these rules have now changed. 12.5% has become 15% of the purchase price and the $750,000 property threshold has been changed to $0.

So this is live now, for any contract that has been entered into on or after 1 of January 2025. The whole point of this is designed to support the collection of tax liabilities owed by non-residents selling Australian property. So, ALL Australian residents selling property will require a clearance certificate from the ATO, or withholding will apply to the transaction. 

If an Australian resident vendor doesn't provide the clearance certificate by settlement, like I said, 15% of the sale price will be withheld and paid to the ATO,  and you're not going to get that back until you do your next tax return - so make sure you do it. We advise all of our clients straight away to get this done.

Lastly, most clearance certificates will issue within a few days, but it's important to apply early, because sometimes it can take up to 28 days to issue. Now, these certificates are valid for 12 months,  and the vendor does not need to wait until they have signed a contract - so get in early. Real estate agents, you can even get your clients to do this at the Form 6 stage, as early as possible. You don't want it to slow down your settlement. 

You can apply for an ATO Clearance Certificate here.

Guys, if your conveyancers aren't telling you this stuff, maybe it's time for a new conveyancer. We're looking for new real estate agents, mortgage brokers, and bankers to work alongside. So please, please, please, if you're thinking of a fresh change in 2025, flick us an email, send us a DM. We want to work with you.

We're first to market with anything new for Queensland property law. We're obsessed with it. It's all we do here at Empire Legal. Get in touch with us.  Make sure you hit the subscribe button, guys. It's our goal this year to get to a thousand followers on YouTube. We're at 630 subscribers....only 370 to go!

Chat soon.  

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If you have any questions, you can email me: george@empirelegal.com.au. 

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Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.