Understanding property clearance certificates
Certificates show how much tax is owing on land.
Key information
A property clearance certificate confirms how much tax is owing on a property. Property clearance certificates used to be known as land tax clearance certificates.
For some property-related taxes, unpaid tax is secured by a charge on the land. If those taxes are not paid and the property is sold, the purchaser can become responsible for them.
If you are buying or selling, or are the mortgagee of a property, you can apply for a property clearance certificate. Purchasers are protected from paying tax that is in excess of what is shown on the certificate if they obtain their own property clearance certificate from us. Relying on a certificate obtained by a vendor does not offer any protection.
A certificate does not prevent us from taking recovery action against a vendor for any outstanding tax.
Information shown on a property clearance certificate
A certificate shows the amount of all taxes owing on the land. Taxes that do not apply to the property appear with a zero amount.
A certificate covers the following taxes:
- land tax
- vacant residential land tax
- windfall gains tax
- commercial and industrial property tax.
These amounts may be:
- tax for the current year that has not yet been assessed
- outstanding tax liabilities from previous years and any accrued interest.
The amounts shown are based on the information available on the date we issue the certificate. New tax liabilities may arise after this date.
Managing tax issues before settlement
Purchasers may wish to resolve the issue of any tax owing on the property with the vendor before, or at, settlement. How this is resolved is a matter for the parties involved.
We are not involved in settlement arrangements. If any tax that is secured by a charge on the land is unpaid after settlement, we may enforce the charge and seek payment from the purchaser.
Taxes covered by a property clearance certificate
Land tax
The land tax liability shown in a certificate may include land tax for the current year and outstanding liabilities from prior years. Where applicable, the land tax amount shown includes any interest and penalty tax. Learn more about the details that apply to these certificates.
Vacant residential land tax
Property clearance certificates show outstanding vacant residential land tax liabilities (including liabilities yet to be assessed) including any interest and penalty tax. Where the certificate includes a vacant residential land tax liability, it will also show the land’s capital improved value for the current year. Capital improved value is used to assess vacant residential land tax.
Windfall gains tax
A property clearance certificate shows any assessed windfall gains tax liabilities relating to the land. This includes any interest and penalty tax and any deferred interest that has accrued.
If a rezoning event has occurred but windfall gains tax has not yet been assessed, the certificate may not show a windfall gains tax liability. Any windfall gains tax assessed later will remain secured by a charge on the land. We may enforce this charge and a purchaser will not be protected from being required to pay this amount.
Learn more about the details that apply to these certificates.
Commercial and industrial property tax
A property clearance certificate may include commercial and industrial property tax (CIPT) liabilities for the land, including any interest and penalty tax.
If CIPT applies, the certificate will show:
- the Australian Valuation Property Classification Code(s) (AVPCC) allocated to the land
- the date it became, or will become, subject to CIPT
- whether we have been notified that the land has undergone a change of use to a non-qualifying use.
Learn more about the details that apply to these certificates.
Apply for a certificate
There is an application fee of $19.50 for each certificate.
You can apply online and pay securely by Visa or MasterCard. Once processed, we email the certificate to you. We usually process certificates in one business day, but some may take up to 10 business days.
If you frequently apply for property clearance certificates, you can become a registered user. Registered users can manage multiple certificate applications and update requests. You can pay securely by Visa, MasterCard or monthly direct debit.
Update your certificate
If you already have a property clearance certificate, you may be able to apply for a free update. This shows any changes since the original certificate was issued.
You can only get a free certificate update if:
- there is no change in the parties involved in the transaction
- your request is made within 90 days of the original certificate being issued.
To apply for an update online, you must have a copy of the original certificate as you need the certificate ID and issue date.
After the 90-day period, you need to apply for a new property clearance certificate.
If settlement has been delayed, you can request an update by calling us on 13 21 61.
Registered users can log in to our clearance certificate portal to apply for a certificate update.