Avoid the 15 per cent surprise – Apply for your clearance certificate early

If you’re selling property in 2025, you need to apply for a clearance certificate from the ATO before settlement, or risk 15 per cent of your sale price being withheld.

Clearance certificates can take up to 28 days to process. To avoid delays, sellers should apply for their clearance certificate at least 28 days before settlement.

What happens if I don’t get a clearance certificate in time?

If your clearance certificate isn’t received in time, the purchaser will be required to withhold 15 per cent of the sale price and send it to the ATO.

You can claim this amount back when lodging your income tax return, but that refund won’t happen until the return is processed.

Remember, clearance certificates are valid for 12 months, so apply early – you can apply before you accept an offer or even when you sign your listing. Early action helps prevent any issues with settlement.

Tips for a smoother application process

The ATO have provided some practical tips for sellers to help ensure their clearance certificate application is processed smoothly:

• Sellers should apply for their clearance certificate as soon as they sign the Offer and Acceptance (O&A), well ahead of settlement.
• To speed up the process, sellers should include their email address and phone number on the application.
• Lodging multiple applications unnecessarily clogs up the system and slows processing times.

Delays can occur if you have outstanding tax returns or other unresolved matters with the ATO.

How to apply

Start your application now at ato.gov.au/clearancecertificateform to avoid any last-minute surprises.

For full details on clearance certificates, visit the ATO website at ato.gov.au/clearancecertificate.