Get ASX Price


Liability limited by scheme approved under Professional Standards Legislation

Latest News
Hot Issues
State and Federal COVID-19 support
Company directors must register - all you need to know
Hardship priority processing of tax refunds
Business valuations: Tips, tricks and traps
Government moves to scrap SG $450 threshold
World's most productive countries
Superannuation changes - Superannuation guarantee (SG)
Unused Super Contributions
Main residence exemption myths and misconceptions
ATO extends COVID-19 relief for SMSFs
Treasury consults on increase to charities financial reporting threshold
Greenhouse gas emission by country since 1880
ATO announces STP Phase 2 blanket deferral
Reminder: super changes for the 2021 financial year
Recontributions of COVID-19 early released super
Working from home during a COVID-19 lockdown: Can you claim a tax deduction for rent?
Lockdowns and mental health
Unemployment rate falls to 12-year low
ATO issues warning to first-time investors
World's largest armies 1816 - 2020
Extra 'super' step when hiring new employees
Pitfalls and proposed changes in the use of R&D tax incentives
Government expands SME loan scheme eligibility
COVID-19 disaster payments to be tax-free: Prime Minister Scott Morrison
Articles archive
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2016
Articles
Reminder – Salary and Wages PAYG Shortfall
$20,000 Asset Write Off Reminder
Danger for buyers of Australian property of $2 million plus
Budget 2016-17
FBT Time
Fringe Benefits Tax – Company Holiday Home
Fringe Benefits Tax – Nil
Estate Planning - early inheritance
ATO issues SMSF tax warning
ATO seeks to dispel LRBA panic
Financial tools your family and friends can use.
$20,000 Asset Write Off Reminder
Tax office issues warning on imminent rule change
Age Pension means-test prevents rational decision-making
Locking Up Bank Accounts
ATO figures show property investors missing out on tax breaks
Danger for buyers of Australian property of $2 million plus

 

In the Tax and Superannuation Laws Amendment (2015 Measures No 6) Act, the government introduces a new withholding obligation on the purchasers of certain Australian assets.



           


 


From 1 July 2016, a purchaser of certain CGT assets will need to withhold 10% of the purchase price and remit it to the Commissioner of Taxation if the seller does not provide a “clearance certificate” from the Commissioner.  The Commissioner will only give such a certificate if the seller is an Australian tax resident.


This withholding is not a final withholding tax, so the seller will still need to include any capital gain in his or her tax return and claim a credit for the amount withheld.


The assets to which this withholding applies are where the asset is valued at $2 million or more, irrespective of what it is sold for, and the asset is taxable Australian real property, or an indirect interest in Australian real property.


Until the Australian Taxation Office implement a process to obtain clearances, this will be an administrative nightmare.


Where a withholding obligation exists, the purchaser must withhold the relevant amount at settlement and pay it to the Commissioner.


The penalty for failing to withhold is equal to the amount that was required to be withheld.


When an amount is withheld, the purchaser is required to complete this online form and provide details of the vendor, purchaser and the asset being acquired.


Conveyancing lawyers will need extra time to satisfy these requirements on your behalf.




15th-June-2016
 

Agostinelli Perlen
Phone: (03) 9654 2022 // Fax: (03) 9654 2044 // Email: info@agpe.com.au

Disclaimer | Privacy Statement