Bunbury is a fantastic place to live in and buy property. You might be looking at it as the perfect destination for your next holiday home, and taking into account the most recent tax changes from the Australian Taxation Office (ATO) is going to be of the utmost importance.
The changes affect only properties that are valued at $2million or greater, and this is to stipulate that a 10 per cent withholding fee does not need to apply. It's also a little different when it comes to foreign investment, as buyers dealing with overseas sellers purchasing a $2million property will need to withhold the 10 per cent fee anyway.
So, what does this mean for selling real estate in Bunbury?
It's a change that has been in the pipeline for a long time, and it's also free of cost and pain to sellers, so there's nothing restricting people from complying.
"The seller needs to provide a clearance certificate to the buyer by settlement, or the buyer will be required to withhold 10 per cent of the sales price and pay this to the ATO," stated Malcolm Allen, the assistant commissioner of the ATO.
"It is easy to obtain a clearance certificate. The form is available to download through our website, and there is no fee for clearance certificate applications."
It's in the interests of both the seller and the buyer to have a clearance certificate for any property over $2million – otherwise, some of the capital gains that your property has accrued over the years will be going to the ATO, and not toward your next property purchase! It'll be a hassle for buyers to have to withhold 10 per cent as well, so to move your home on as quickly as possible, apply early for a clearance certificate and take the stress out of selling.
Contact Ray White Bunbury today to chat more about these recent tax changes.