Consumer News

By Tim McKibbin – REINSW CEO

For most of us buying or selling a $2 million property exists only in our dreams, but for the lucky few there will shortly be some additional obligations.

New requirements from 1 July 2016 require a vendor of a property valued over $2 million to apply for a clearance certificate if they want to avoid the purchaser withholding 10% of the sale price. 

This is designed to capture foreign vendors avoiding taxation obligations and some believe it is only triggered when the vendor is a foreign national. 

However the obligations are active for all sales of a property over $2 million regardless of the vendors nationality. 

Not knowing about this new law could have a knock-on effect for other transactions, so it is important to make sure all parties are aware of it.