Selling in Greater Springfield? Don’t Forget This Crucial Document
When it comes to selling residential property in Camira, Brookwater, Greater Springfield, or anywhere across Queensland, there’s one vital piece of paperwork many sellers overlook - until it’s too late. At V & Co. Realty, we’re all about preparing our clients for success, and that includes making sure you're in the clear, literally, with an ATO-issued Clearance Certificate.
What’s a Clearance Certificate, and Why Should You Care?
Under Australian tax law, foreign resident capital gains withholding (FRCGW) applies to all property sales unless the seller can prove they’re an Australian resident for tax purposes. The way to prove that? A valid Clearance Certificate from the ATO, presented to the buyer before or at settlement.
No certificate? The buyer is legally required to withhold up to 15% of the sale price (or market value). That’s a hefty chunk of your equity to have tied up until tax time - and not ideal when you're trying to fund your next move or purchase.
Who Needs One?
All Australian tax residents selling property need to apply. This includes individuals and certain non-individual entities (like companies or trusts). If your name is on the property title, your name needs to be on a certificate - simple as that.
Whether you’ve lived in your family home in Camira for 10 years, just bought into Brookwater last year, or you're upsizing in Springfield Lakes, don’t skip this step.
Real-Life Example: Why Timing Is Everything
Let’s say Willow and Stanley (both Australian residents) are selling their Brookwater home. Willow gets her certificate early, but Stanley leaves it too late. By settlement, his certificate hasn’t come through. The buyer is now legally required to withhold 15% of Stanley’s share (potentially tens of thousands of dollars) until his next tax return is processed. Awkward? Very. Avoidable? Absolutely.
The Process: Quick, Free, and Valid for 12 Months
The good news? Clearance certificates are free, most are processed within a few days (though allow up to 28), and they’re valid for 12 months. You can apply as soon as you start thinking about selling - no need to wait until you’ve listed.
Your real estate agent, solicitor, or tax agent can apply on your behalf, or you can do it yourself online through the ATO.
Key Tips for Sellers in Our Area:
- Apply early – as soon as you're considering listing.
- Double-check your details – the name on the certificate must match the title exactly.
- Each seller needs their own certificate – even if you're married or co-own the property.
- Keep it on file – you’ll need to give it to the buyer before or at settlement.
Don't Let a Paperwork Oversight Stall Your Sale. At V & Co. Realty, we’re not just here to list your property - we’re here to guide you through every step, including the lesser-known but crucial admin like Clearance Certificates. Our experienced team is ready to help ensure your sale goes off without a hitch (or a 15% withholding).
Need help applying or want to learn more? Reach out to us today and let’s get you cleared for sale.