Every seller of Australian property needs an ATO clearance certificate, or the buyer withholds 15% of the price. Work out what would be withheld.
Key facts
- Every seller of Australian real property, including your home, needs an ATO clearance certificate to stop the buyer withholding 15% of the price (foreign resident capital gains withholding).
- Since 1 January 2025 the 15% applies to all property, whatever its value.
- Each owner on the title needs their own certificate. They're free, can take up to 28 days, and are valid for 12 months.
- Apply as soon as you're thinking of selling; you don't need a signed contract.
- If an amount is withheld, an Australian resident gets it back only by lodging a tax return for the year the contract was signed.
Amount withheld without a certificate
| Sale price | One owner, no certificate | Two owners, one without a certificate |
|---|---|---|
| $500,000 | $75,000 | $37,500 |
| $750,000 | $112,500 | $56,250 |
| $1,000,000 | $150,000 | $75,000 |
| $1,500,000 | $225,000 | $112,500 |
| $2,000,000 | $300,000 | $150,000 |
Withholding rates
| Contracts signed | Rate | Property it applies to |
|---|---|---|
| 1 January 2025 onwards | 15% | All property |
| 1 July 2017 to 31 December 2024 | 12.5% | $750,000 or more |
| 1 July 2016 to 30 June 2017 | 10% | $2,000,000 or more |
How to get one
- Apply online through the ATO (or have your lawyer or tax agent apply) as soon as you're thinking of selling.
- Each owner named on the certificate of title applies separately; the names must match the title.
- Give it to the buyer (usually via your conveyancer) at or before settlement.
Common questions
What is an ATO clearance certificate?
A certificate from the ATO confirming you're an Australian resident for tax. Giving it to the buyer at or before settlement means they don't withhold 15% of the price.
How long does a clearance certificate take?
Up to 28 days, longer if your tax returns aren't up to date or your name doesn't match the title. It's valid for 12 months.
What happens if I don't have a clearance certificate at settlement?
The buyer must withhold 15% of your share of the price and pay it to the ATO. ATO example: one of two owners of a $600,000 home without a certificate had $45,000 withheld, refunded only after lodging a tax return.
Do I need a clearance certificate to sell my home?
Yes. Since 1 January 2025 every sale of Australian real property needs one from each Australian resident seller, including your main residence.
How much is foreign resident capital gains withholding?
15% of the price (or market value if not at arm's length) for contracts from 1 January 2025. Foreign residents can apply for a variation if 15% is more than their likely tax.
See also the capital gains tax calculator, the CGT 6-year rule and the stamp duty calculator.
Source: ATO, Australian residents and clearance certificates. Checked 22 October 2026.