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New laws affect all vendors and purchasers selling or buying property over $2m

19 May 2016

From 1 July 2016, new laws affect all vendors and all purchasers selling or buying property over $2,000,000 in Australia. All vendors who sell a property valued at $2M or more will have 10% of the sale price withheld by the purchaser, UNLESS they can provide a clearance certificate from the Australian Tax Office showing they are an Australian resident on or before settlement. All purchasers who are buying property have to pay to the ATO 10% of the purchase price UNLESS they have received a clearance certificate from the vendor. Severe penalties apply if this is not done.

For more information see https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/Foreign-resident-capital-gains-withholding-payments/

 By Linda Alexander

Linda Alexander Business Lawyer / Director

Linda Alexander is a Business Lawyer and acts for clients on a wide range of business law, superannuation, estate planning, family provision and p.. Learn more about Linda Alexander

Contact Linda Alexander by email or call +61 2 8089 3142.
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