Dear ATO Team,
I am an Australian citizen who had been working overseas for 10 years and recently moved back to Australia permanently as of 7 March 2023. Prior to my return, I had been a non-tax resident. According to the 183-day test, my tax residency status reverts to being a tax resident as of 6 September 2023.
I am applying for a Clearance Certificate to sell my property, which I have owned for 16 years. The application asks: "Has your residency status changed since your last tax return or will it change before you sell the property?"
I plan to sell my property in October 2023. For the financial year 2022-2023, I'm still classified as a non-tax resident, but I will be a tax resident for the financial year 2023-2024 (the year I plan to sell the property).
Typically, as Australian tax residents complete this application, the answer to this question would be "No." However, in my situation, the accurate answer would be "Yes." I am concerned that ticking "Yes" may result in the purchaser withholding 12.5% of the sale price to pay to the ATO.
Could you please clarify which answer I should provide on the application and whether this will result in the purchaser withholding any portion of the sale price?
Thank you very much for your time and help!
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