New ATO Rule: Clearance Certificate Required for Home Sales in 2025

Planning on selling your home in 2025? There’s a new rule you need to know about. Starting January 1, 2025, all property sales in Australia will require a capital gains withholding clearance certificate from the ATO.

This rule used to apply only to properties sold for $750,000 or more. Now, the threshold is gone, meaning every seller must comply—no exceptions.

What’s changed?

1. No More $750,000 Limit: The capital gains withholding clearance certificate rule applies to all property sales, regardless of price.
2. Higher Withholding Rate: Without a clearance certificate, buyers must withhold 15% of the sale price and send it to the ATO.

These changes are designed to ensure foreign residents pay their fair share of capital gains tax. But even Australian residents need to complete the form, or you’ll risk delays and inevitable financial headaches.

If you are selling a property what do you need to do?

1. Apply for a Clearance Certificate Early: As soon as you decide to sell, apply online with the ATO. Most certificates are issued quickly, but it can take up to 28 days. The certificate is valid for 12 months, so you don’t have to wait until you find a buyer.
2. Provide the Certificate to the Buyer: Make sure the buyer gets your clearance certificate before settlement. Otherwise, they’ll need to withhold 15% of the sale price and send it to the ATO.

Why does it matter?

If you don’t have a clearance certificate, getting your money back can take time. You’ll need to lodge a tax return to reclaim the withheld 15%, which could delay your access to funds after the sale.

Learn more about Capital Gains Withholding Clearance Certificates

Need a hand?

If you feel overwhelmed with the process Proactive Accounting can help. We can help you apply for your ATO clearance certificate and turn this around within 48 hours. Contact our office today to get the guidance you need!