Selling property over $2 million - new rules apply from 1 July 2016

As part of the governments focus on strengthening our foreign resident capital gains tax (CGT) regime, new rules will soon apply to sales of Australian real property with a market value of $2 million or more.

Sellers will incur a 10% non-final withholding tax for all contracts entered into on or after 1 July 2016 unless they obtain a clearance certificate or variation certificate.

Selling property with a market value of $2 million or above

Selling property with a market value of $2 million or above

Australian residents need to obtain a clearance certificate from the ATO prior to settlement to avoid the 10% non-final withholding tax and provide it to the purchaser prior to settlement.

Foreign residents may apply to the ATO for a variation to the 10% non-final withholding tax, and provide this variation notice to the purchaser prior to settlement.

Vendors can claim a credit for the withholding amount paid to the ATO against the final tax assessed in their income tax return.

Purchasing property with a market value of $2 million or above

You will be required to withhold 10% of the purchase price and pay it to the ATO unless the seller provides you with a clearance certificate

You may vary down the 10% non-final withholding tax if the seller has received a variation notice from the ATO and provided it you prior to settlement.

Purchasers must pay the amount withheld at settlement to the ATO.

For more information or guidance, please contact:

Martin van der Saag
Director
T: 02 9984 7774
E: martinv@northadvisory.com.au

Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au

SERVICE SOLUTIONS

Streamlined accounting for business growth

North Advisory supports business owners in establishing, growing and optimising their companies through streamlined accounting processes, intelligently integrated tech and expert financial collaborations.

Company Set-Up

Start a company from the ground up, with all the must-haves and none of the hassle.

From

$865 excl. GST

  • A compliant, full trading company set-up from start to finish
  • Management of ABN, business TFN and/or ACN
  • Complete ASIC registration, set-up and management
  • Registration for all relevant taxes like GST and PAYG
  • Expert financial and accounting guidance for company set-up
  • Qualified finance professionals as your ATO and ASIC Agent
  • A comprehensive information package to run your company like a pro

Business Accounting

Access comprehensive accounting services to save time and optimise financial performance.

From

$300 per month

  • Compilation of Annual Financial Statements
  • Acting as ASIC/ATO agents on your behalf
  • Preparing/lodging business income tax returns
  • Preparing Annual Dividend/Distribution Statement
  • Preparing/lodging quarterly BAS
  • Yearend income tax distribution and optimisation planning
  • Yearend review and adjustment of accounting software
  • Secure online document storage facility
  • In-person, online or over-the-phone meetings
  • Accounting guidance and holistic advisory support

Additional Services

Add extra value where it suits you, from personal wealth management to enterprise accounting solutions.

From

POA

  • Bookkeeping services
  • SMSF set-up and management
  • Business accounting software set-up
  • Xero accounting software training
  • Discretionary trust set-up
  • Non-trading discretionary investment trust
  • Individual tax returns
  • Personal wealth management
  • Investment and investment property schedules

Driven by our values

Effortless and Seamless

On-Boarding Process

Intuitive and Knowledgeable

Direct Expert
Access

Useful and Articulate

Financial
Reporting

Forward
Thinking

Compliance Solutions

Streamlined
Tech

Integrated and Automated