If you’re selling a property in Australia worth $750,000 or more, there’s one important document you must not forget — the ATO Clearance Certificate.
But what exactly is this certificate, why is it important, and how do you get one without the usual paperwork headache?
Let’s break it all down — in plain English — with a real-world story, easy steps, and some helpful advice from the pros at Perfect Accounting.
A Real-Life Story to Begin With…
Sally and her husband had just accepted an offer on their Sydney home for $1.2 million. They were excited to downsize and move closer to their grandkids. But during the settlement process, their conveyancer asked:
“Do you have an ATO Clearance Certificate?”
Sally paused. “A what?”
Turns out, without that certificate, $360,000 (that’s 30% of the sale price!) could be withheld by the buyer’s solicitor — and sent straight to the Australian Taxation Office. Yikes!
Luckily, they contacted Perfect Accounting, who handled it fast. In just a few days, the issue was sorted and settlement went ahead without a hitch.
So, What Exactly Is an ATO Clearance Certificate?
An ATO Clearance Certificate is a document issued by the Australian Taxation Office (ATO) confirming that the seller of a property is an Australian tax resident.
Without this certificate, the buyer is legally required to withhold 12.5% of the sale price and pay it directly to the ATO under the Foreign Resident Capital Gains Withholding (FRCGW) rules.
In short:
If you’re an Aussie tax resident selling for $750,000 or more, you need this certificate to receive the full amount of your sale.
Who Needs an ATO Clearance Certificate?
You must apply for an ATO Clearance Certificate if:
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You’re an Australian resident for tax purposes
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You’re selling real estate worth $750,000 or more
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The property is not owned by a foreign entity
If you’re unsure about your residency status, you can check the ATO’s residency guide.
️ How to Apply for an ATO Clearance Certificate – Step-by-Step
Getting the certificate doesn’t have to be a pain. Here’s a quick and easy step-by-step guide:
✅ Step 1: Prepare Your Details
Make sure you have:
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Full name
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TFN (Tax File Number)
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Contact information
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Property details (address, settlement date, etc.)
✅ Step 2: Submit Your Application
Head over to the ATO’s online clearance certificate form. It’s free to apply and can be done in under 20 minutes.
Tip: Double-check your TFN and property details before hitting submit.
✅ Step 3: Wait for Processing
Usually, the ATO processes applications within 5 to 28 days. If they need more information, they’ll contact you.
✅ Step 4: Provide the Certificate to the Buyer
Once approved, send the certificate to your conveyancer or solicitor so it can be passed on to the buyer.
⏳ What Happens If You Don’t Have It?
If you don’t provide the buyer with an ATO Clearance Certificate before settlement:
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The buyer is legally obligated to withhold 12.5% of the sale price
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That amount is paid to the ATO, not to you
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You’ll then have to lodge a tax return to claim it back — which can take months!
So yes — it’s absolutely worth getting this sorted before you sell.
Why Let the Pros Handle It?
If you’re busy or overwhelmed by paperwork, getting professional help is a smart move.
Perfect Accounting are ATO Clearance Certificate experts. They’ve helped thousands of Aussie sellers breeze through the process without delays or mistakes.
With same-day submissions, ATO follow-ups, and a dedicated support team, they make it stress-free.
“I thought applying would be a nightmare, but Perfect Accounting took care of everything. I had my certificate in less than a week!” – James, Melbourne
When Should You Apply?
As soon as you decide to sell! Don’t wait until settlement is around the corner.
It’s best to apply early in the sale process — ideally when you first list your property or receive an offer.
✅ Key Benefits of an ATO Clearance Certificate
Let’s wrap up the major advantages:
| Benefit | Description |
|---|---|
| Keep your full sale price | Avoid having 12.5% withheld |
| Prove residency | Confirm you’re not a foreign seller |
| Save time at settlement | No last-minute delays |
| Reassure buyers | Makes transactions smoother |
Final Thoughts: Don’t Risk It — Get Your ATO Clearance Certificate Today
Selling property is stressful enough — don’t let the ATO throw a curveball into your plans. Getting an ATO Clearance Certificate is simple, free, and absolutely essential if you’re selling real estate over $750,000.
If you’re short on time or just want peace of mind, let the professionals handle it.
Contact Perfect Accounting today to get your ATO Clearance Certificate fast, easy, and done right.
They’ve helped thousands of Aussies — and they’re ready to help you too.
