Clearance certificates

If you’re selling your property under contract, you need to apply for a clearance certificate and provide the buyer with a copy of it at least 14 days before the contract completion date. For contracts completing within 14 days, you need to provide a copy on the completion date.

The clearance certificate needs to be current when given to the buyer, which means

• it’s less than three months old, or
• it includes any land tax charges for the year that settlement will take place.

The certificate does not have to be ‘clear’ when you provide it to the purchaser.

Three lots with the same owner and in the same strata plan will be processed under one certificate. If more than three lots are involved you will need to lodge more than one certificate.

The seller should provide you with a clearance certificate as part of the contract for sale.

If there is no contract, you can apply for a clearance certificate as the buyer. We recommend you do this to make sure the previous owner has paid all outstanding land tax.

A mortgagee can apply for a clearance certificate for land they intend to finance.

You can request a clearance certificate as a tenant.

You will need to choose an enquiry type when applying.

• Vendor: if you’re selling the property
• Purchaser: if you’re the buyer and purchasing without a contract
• Refinance: If you’re a lender
• Lease: if you’re a lessee

If you’re the vendor, you’ll need to provide information for each buyer:

• name
• date of birth
• company names and addresses
• company identifiers
• identity details for foreign buyers.

Paying your land tax at settlement via an electronic lodgment network operator (ELNO)

You can pay land tax by BPAY during settlement via an approved ELNO.

Before settlement

Obtain a clearance certificate

You will need to apply for a clearance certificate for the land being sold. See more information on clearance certificates

• Certificate shows clearance – if the certificate shows there is no land tax payable, no payment of land tax is required at settlement.

• Certificate doesn't show clearance – if the certificate shows there is land tax payable, the land tax will need to be paid in full on or before settlement.

Obtain an amount payable

To obtain the amount payable to clear the land tax on or before settlement, you will need one of the following documents:

• Land tax assessment notice – If you already have a land tax assessment notice and it is not overdue, you can use the notice to make payment. If you don't have a current land tax assessment notice and you're not registered for land tax, you can register for land tax. If you are registered for land tax and haven't received an assessment notice, email landtax.lodgements@revenue.nsw.gov.au to request the assessment to be issued.
• Clearance quote – If for any reason a land tax assessment can't be issued as part of the above process, a clearance quote will be issued in its place so that settlement can proceed.
• Settlement letter – If you have an assessment notice and its due date has passed, you can email taxdebt@revenue.nsw.gov.au to obtain a settlement letter or, if you need further information, you can contact us on 1300 368 710.

If paying before settlement, simply pay the full amount shown on the relevant document before its due date and before settlement takes place. Retain a copy of the receipt as proof of payment.**

If paying at settlement, follow the instructions below.

At settlement

As part of settlement, you'll need to upload one of the above documents to the ELNO workspace with a copy of the land tax certificate, and make full payment of the amount shown on the relevant document using the BPAY details provided.

• Paying with a land tax assessment notice – The land item must appear on the assessment as 100 per cent owned. The land item shown on the assessment must match the land item on the clearance certificate. This method can only be used if the settlement is taking place on or before the first due date on the assessment notice. Full payment of the assessment is required for the land tax to be cleared.

• Paying with a clearance quote – The land item shown on the clearance quote must match the land item on the clearance certificate. The total amount payable must be paid by the due date on the clearance quote.

• Paying with a settlement letter – The land item shown on the settlement letter must match the land item on the clearance certificate.  The total amount payable must be paid by the due date on the settlement letter.

On payment of the amount shown on any of the above documents, the land tax on the land will be considered to have been paid. A copy of the itemised settlement statement from the ELNO should be retained as proof of payment.**

**If you require a clear certificate after making payment either before or at settlement, you can update your certificate online Payments generally take 48 hours to process before the certificate status can be updated.