Understanding ATO Clearance Certificates in Inner West Sydney: What You Need to Know

As your trusted tax advisors in Inner West Sydney, we’re here to break down the latest tax changes outlined in the 2023-24 Mid-Year Economic and Fiscal Outlook (MYEFO), including updates on ATO clearance certificate. Stay prepared for what’s ahead with our expert guidance.

Changes to ATO Interest Charges:

The ATO imposes General Interest Charges (GIC) and Shortfall Interest Charges (SIC) on outstanding tax debts. Currently, these interest charges are tax-deductible. However, starting from 1 July 2025, GIC and SIC incurred in income years will no longer be deductible. This means increased costs for late tax payments or rectifying tax liabilities. It’s essential to accurately self-assess tax liabilities and pay on time to avoid these additional expenses.

Requirement for ATO Clearance Certificate when Selling Real Property:

Selling real property? You’ll now need to obtain an ATO clearance certificate beforehand. Previously, only foreign residents were subject to withholding tax when selling properties above $750,000. However, starting from 1 January 2025, every Australian resident vendor must obtain a clearance certificate before settlement, regardless of the sale price. Failure to do so could lead to withholding 15% of the sale price, potentially causing challenges in property settlement.

What’s Next:

Whether it’s navigating tax obligations or understanding these changes better, our team at Endurego Tax is here to assist you. Contact today to ensure you’re prepared for these tax changes and any questions you may have.

Stay informed, stay prepared, and let us help you navigate through these tax adjustments smoothly.

Endurego Tax – Your Partner in Tax Solutions for Inner West Sydney.