All contracts of sale signed on or after July 1st 2017 where the consideration value is greater than or equal to $750k require a Clearance Certificate issued by the ATO.
Failure to obtain a Clearance Certificate will require the purchaser’s agent (Conveyancer) to retain 12.5% of the sale price at settlement and remit funds to the ATO on the day of or shortly after settlement. General interest charge may be imposed on amounts paid after the due date.
Conveyancers representing the purchaser should ensure a Clearance Certificate has been obtained in the days leading up to settlement.
AICWA best practice is to ensure that a Clearance Certificate has been obtained by the client prior to them engaging your services.
Conveyancers representing vendors must ensure the Clearance Certificate has been issued prior to settlement and is made available to the purchaser’s agent (Conveyancer) prior to settlement.