Selling property in Western Australia comes with more moving parts than many expect, and right now, one requirement is still catching sellers off guard. Recent data shows nearly half of Australians are unaware they must obtain an ATO clearance certificate when selling property. That gap in awareness is creating unnecessary stress, delays and, in some cases, significant financial impact at settlement.
From 1 January 2025, the rules changed. Every property sale in Australia now requires a clearance certificate, regardless of value. That means whether you’reselling a coastal home in Ocean Reef, an inner-city apartment or a family property in Perth’s suburbs, the same requirement applies.
At its core, the clearance certificate confirms residency for tax purposes. Without it, the buyer is legally required to withhold 15% of the sale price and send it directly to the Australian Taxation Office. For many sellers, that can come as an unwelcome surprise.
Importantly, this isn’t a tax you’re paying. For Australian residents, it’s simply a compliance step. The certificate ensures the full sale proceeds are released at settlement, rather than a portion being held back and only returned later through the tax system.
The risk sits in timing. While many certificates are processed quickly, delays can happen. Outstanding tax returns, unresolved ATO matters or even minor name mismatches can extend processing times to several weeks.
In a market where settlement timelines are often tight, leaving this step too late can disrupt your plans, particularly if you’re relying on sale proceeds to secure your next property.
There’s a simple way to stay ahead of it. Clearance certificates are valid for 12 months, which means the process can begin well before your property even hits the market. Applying early removes pressure from the sales process and helps ensure settlement runs smoothly.
Across Perth and the wider WA market, preparation continues to play a key role in achieving strong outcomes. Pricing, presentation and negotiation matter, but so do the details behind the scenes.
Understanding requirements like this gives you greater control over your sale, avoids last-minute surprises and keeps momentum on your side.
When everything aligns, from buyer demand through to settlement readiness,you’re in a far stronger position to move forward with confidence.
Source: reiwa.com.au
Image source: Shutterstock
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