ATO reminder on Christmas closure and clearance certificates
30 November 2016
The Australian Tax Office (ATO) has advised that its offices will be closed over the Christmas break from 23 December 2016 to 3 January 2017. Note that no ATO clearance certificates will be issued during this period. Practitioners are reminded that online applications must be made at least 14 days in advance of to avoid possible settlement delays.
Under the new rules applying to vendors disposing of certain taxable Australian property under contracts entered into from 1 July 2016, a 10% non-final withholding will be applied to these transactions at settlement.
If you are an Australian resident vendor selling real property over AU$2 million, you will need to obtain a clearance certificate from the ATO prior to settlement, to ensure you don't incur the 10% non-final withholding.
Bear in mind the Christmas closure period for ATO offices and that no certificates will be issued during this time. Also consider that you must apply online at least 14 days before the clearance certificate is required to avoid possible delays at settlement.