When do I need a CGT Certificate?

Do I need to apply for a CGT certificate?

As a vendor, if your property has a market value of $750,000 or more and you are an Australian resident, you need to present the purchaser with a capital gain withholding clearance certificate on or before the settlement day. A clearance certificate confirms the withholding tax is not applicable to the sale of property. Otherwise, the purchaser is obliged to withhold 12.5% of the purchase price and remit the amount to the Australian Taxation Office.

When to apply?

The granting of the clearance certificate can take up to 28 business days. Therefore, to avoid unanticipated delay of settlement, the vendor should complete and lodge the application form as early as practical after entering a contract of sale.

How to apply?

The application form must be completed and submitted in one session on the Australian Taxation Office website. You cannot save and return to the incomplete form.

The CGT certificate application will require specific information based on the information you provide.

Detailed application instructions are available on the ATO website: https://www.ato.gov.au/forms/capital-gains-withholding-clearance-certificate-application-online-form-and-instructions---for-australian-residents/.

If you have any further inquiries, please contact our office. Our team members are always here to help!