New law could delay big property purchases
From 1 July 2016, new tax and superannuation laws introduce a 10 per cent withholding obligation on the purchasers of properties over $2 million where the vendor is a foreign resident. Sellers need to obtain a clearance certificate to prove they are Australian for tax purposes.
Buyer’s will have to withhold 10 per cent of the property price to ensure the purchaser is compliant with the new regulations.
Source: Mortgage Business