Navigating Steps Five and Six in Property Transactions
Step Five: Review Variation Notice
Buyers can vary the amount to be withheld, including reducing it to nil, with a valid variation notice. This notice is reliable if the seller's details match those on the ownership documentation, and settlement occurs before the notice expiry. Buyers may verify the notice's validity with the ATO if needed.
Step Six: Withhold, Notify, and Pay
Buyers obligated to withhold at settlement must complete a 'Foreign resident capital gains withholding Purchaser Payment Notification' form. Upon processing, the buyer receives a payment reference number (PRN) and a payment slip. Payment methods include electronic transfer, BPAY, Australia Post, or mailing a cheque to the ATO. Buyers receive a receipt as proof of fulfilling obligations, and sellers need the payment confirmation for tax returns. Failure to obtain a PRN and pay withholding may result in general interest charges from settlement.
For assistance, contact Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment via our live calendar.