Last year laws were passed legislation and came into effect from 1 July 2016 that relate to property sales with a market value of $2 million or more. 

If a contract of sale is entered into on or after 1 July 2016, the vendor will now need to apply to the ATO for a clearance certificate.

If a valid certificate isn’t presented to the purchaser prior to the settlement of the property, the purchaser must withhold 10% of the purchase price and pay this to the ATO.
Any Australian resident vendor can apply to the ATO for a clearance certificate even if their property isn’t listed for sale. 

They are then valid for 12 months and can be used on multiple property sales by the same vendor, if required.

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