Harcourts might not be a familiar name to many outside the metropolitan areas but Harcourts is a very successful, multi-national real estate specialist business that entered into a national arrangement with Landmark to provide first class real estate services to regional Australia.
The ATO has introduced legislation, valid from 1st July 2016, which affects investors who plan to buy or sell property with a value of $2m or more.
Australian residents who are selling a property with a market value of $2m or more are now required to complete an ATO Clearance Certificate, which confirms a 10% withholding amount of the sale price does NOT need to be withheld.
If the seller does not provide the clearance certificate, the purchaser will be required to withhold 10% of the sale price and pay this to the ATO.
Certificates are valid for 12 months from date of issue and can be downloaded from the ATO web site.
Severe penalties apply to both sellers and purchasers who fail to comply.