Since the new legislation was brought on 1st January 2025 all Australian residents selling real estate are required to obtain a clearance certificate from the Australian taxation office.
It has been noticed, due to incorrect names where the name on Certificate of Title does not match with the name on ATO records there have been delays in providing clearance certificates to such applicants. If such an applicant/seller does not have the clearance certificate by the time of settlement, purchaser is required to withhold 15 percent of the sale price.
The best way to pursue this is:
1. Making sure the first and last name matches with the ATO records.
2. In case where the seller has changed their name, they must provide a proof of this to the purchaser.
3. Only legal names are to be used and not any nickname.
4. Where the seller has changed their name, they should update their details online with the Australian Taxation Office (ATO). If the documents are from overseas source, they need to be sent to ATO by post which can take some time, so better to plan accordingly to allow for such extra time.
Attached are the links which can be helpful in preparing for the clearance certificates.
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