ℹ️ General information only – not legal or tax advice. This article explains the general rules as at November 2026. Rules and processing times can change. Please get advice about your own property sale.
Selling a property in Australia? There is one small piece of paperwork that can save you from having 15% of your sale price held back at settlement: a clearance certificate. Here is everything you need to know – in plain English.
What is a clearance certificate?
A clearance certificate is a document from the tax office that confirms you are an Australian resident for tax purposes. You give it to the buyer (usually through your conveyancer or lawyer) at or before settlement. It tells the buyer they don’t need to withhold any money from the sale price.
Why does it matter? The 15% rule
Since 1 January 2025, buyers must withhold 15% of the purchase price on every Australian property sale – no matter how much the property sells for – unless each seller provides a valid clearance certificate. This is called foreign resident capital gains withholding.
Before 2025, the rule only applied to properties worth $750,000 or more, at a lower rate. Now it applies to every sale, including the family home. Many Australian residents are caught out because they assume the rule is only for foreign sellers.
A simple example
Priya and Sam are Australian residents and own their home together. They sell it for $700,000. Priya has her clearance certificate at settlement, but Sam’s application was lodged too late.
- Priya’s half: no withholding
- Sam’s half ($350,000): the buyer must withhold 15% – $52,500 – and pay it to the tax office
- Sam can generally claim it back only when Sam’s tax return is lodged for the year the contract was signed
That money could have gone towards their next home. Applying early would have avoided the problem.
Who needs a clearance certificate?
- Australian residents selling a home, investment property, vacant land or commercial property
- Every owner on the title – each person or entity needs their own certificate
- Companies, trusts and super funds that own property – the company or trustee applies
- People transferring property to family members, as transfers can also be caught
Some transfers don’t need a certificate – for example, certain transfers under family law court orders, or property passing to beneficiaries of a deceased estate. If you are unsure, ask us before settlement.
Key facts at a glance
- Cost: free – there is no government fee
- Processing time: up to 28 days
- When to apply: as soon as you are thinking of selling – you don’t need a signed contract
- Valid for: 12 months from the date it is issued, as long as your residency doesn’t change
- Not selling after all? You don’t have to use it
How to get a clearance certificate
You can apply yourself, or a registered tax agent or lawyer can apply on your behalf. Conveyancers who aren’t lawyers can’t apply for you – they can only help you apply yourself.
To avoid delays, check these before applying:
- Your first and last names on the property title match your name on tax records
- Your tax returns are up to date
- You know the exact names of all owners on the title
- For trusts and companies, the trustee or company details are correct
What if 15% has already been withheld?
If an amount was withheld because you didn’t have a certificate in time, you can generally claim it back as a credit in your tax return for the income year the contract was signed (not the settlement date). You will need the buyer’s payment confirmation. The amount is refunded if you have no tax debts and no capital gains tax to pay on the sale – otherwise it is used to reduce what you owe.
Foreign residents
If you are not an Australian resident for tax purposes, you can’t get a clearance certificate. You may be able to apply for a variation to reduce the amount withheld. Read more about tax residency.
Frequently asked questions
Do I need a clearance certificate to sell my own home?
Yes. Since 1 January 2025, it applies to every property sale, including your main residence.
My partner and I own the property. Do we both need one?
Yes. Each owner named on the title needs their own clearance certificate.
How early should I apply?
As soon as you are thinking of selling. Processing can take up to 28 days.
Does a clearance certificate mean I don’t pay capital gains tax?
No. It only stops the 15% withholding. Capital gains tax (if any) is worked out in your tax return. Try our CGT calculator.
Key takeaways
- Without a clearance certificate, 15% of the sale price is withheld
- It applies to every property sale since 1 January 2025
- Each owner needs their own certificate
- Apply early – it can take up to 28 days
- It’s free and valid for 12 months
Talk to UV TAX
As a registered tax agent, UV TAX can apply for your clearance certificate for you and help with any capital gains tax on your sale. Call 0466 268 405 or (03) 9007 7892, or book a free call online. Learn more on our clearance certificate service page.
Related: Clearance Certificate Service · Capital Gains Tax · Stamp Duty Calculator
This article is general information only and is not legal or tax advice. It does not consider your personal circumstances. Whether and when a clearance certificate is issued is decided by the tax office, and UV TAX cannot guarantee a certificate will be issued before your settlement date. Please seek advice about your situation.