In one recent change ALL properties sold in Australia must have 15% of the sale price withheld at settlement and given to the tax office unless a tax clearance certificate is provided. This was previously in place if the value exceeded $750,000 and at a rate of 12.5%
The purpose of this law is to ensure that foreign buyers pay any capital gains tax, rather than selling and “disappearing”. Any citizen or Permanent Resident can apply to get an exemption. Failing to do this in time means the money expected at settlement won’t be available. It can be claimed back, but the delay might prove very inconvenient. It sems it may not be able to be retrieved until your next tax return is lodged.
A clearance certificate application should be lodged at least 28 days prior to settlement for safety. Without proper planning, it looks like that’s the end of 14-day settlements or similar