See how much a buyer must withhold and pay to the ATO at settlement if the seller has no clearance certificate, and what the seller receives.
Since 1 January 2025, foreign resident capital gains withholding applies to every sale of Australian real property, whatever the price, at a rate of 15%. The buyer must withhold that share of the price and pay it to the ATO unless the seller gives the buyer a valid clearance certificate from the ATO before settlement. Australian resident sellers avoid withholding by getting that certificate; foreign resident sellers can apply to the ATO for a variation to a lower amount.
How to use it. Enter the contract price and leave the rate at 15% (enter a lower rate only if the ATO has granted a variation). Enter what else must be paid from the proceeds at settlement, such as your mortgage payout and the agent's commission.
Worked example (illustrative). On a $900,000 sale without a clearance certificate the buyer withholds $135,000. If $450,000 goes to pay out the mortgage, the seller receives $315,000 instead of $450,000. An Australian resident can claim the withheld amount back as a credit in their tax return, but that can take many months, and the shortfall may mean the lender cannot be paid out, delaying settlement.
Limits. The calculator does not work out your actual capital gains tax. Withholding is a prepayment, not the final tax. Check the rules on the ATO website and with your conveyancer; see foreign resident CGT withholding.
Costs, Duty and 2026 Rules
Why every Australian property seller needs an ATO clearance certificate since 1 January 2025, how the 15% withholding works, variations for foreign residents and worked examples.
