Taxes, duties, levies and royalties
Listen

Clearance certificates

A clearance certificate shows whether there is any land tax owing on a property.

Land Tax is a charge on land owned in NSW as at the taxing date (31 December of each year), except for:

  • exempt land
  • crown land where a lessee must pay land tax
  • land owned by a company where the shareholders are deemed to be the owners ie they have an exclusive right to use and occupy parts of the land (a company title scheme).

The charge applies from the taxing date and is only removed when the tax is paid or an exemption is applied. There is no pro-rata available.

Why you need a clearance certificate

The clearance certificate protects a purchaser from any outstanding land tax liability by a previous owner. It does not provide any protection to the owner of the land.

  • When land is being transferred under contract, the seller is required to apply for a land tax clearance certificate.
  • When you’re purchasing a property, you’ll need to find out if there is any outstanding land tax owing.

No outstanding land tax means the property is ‘clear’. This may mean:

  • the land is not liable or is exempt from land tax
  • all tax to date has been paid
  • we’re satisfied there’s no risk of non-payment.

To clear a property, you’ll need to pay all land tax owing. If your certificate doesn’t have payment instructions, contact us for more details.

When do you need a clearance certificate?

Selling a property

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.

Buying a property

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.

Providing finance for a property

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

Renting a property

You can request a clearance certificate as a tenant.

Apply for a land tax clearance certificate

You can apply for a clearance certificate through one of these client service providers:

Enquiry types

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

Vendor information requirements

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 at a settlement room

You can make a payment at one of the settlement rooms provided by one of the client service providers listed above.

To obtain a clearance at a settlement room you will need to present:

  • the land tax clearance certificate showing a charge, either a vendor or purchase copy
  • a current quote of an amount to clear the particular land item or a current land tax assessment including the land item (the due date for these items must not have passed)
  • a bank cheque for the clearance amount.

Electronic Lodgement Networks

You can pay by BPAY during settlement via an approved electronic lodgement network.

At settlement you will need to present:

  • the land tax clearance certificate showing a charge, either a vendor or purchase copy, or
  • a current quote of an amount to clear the particular land item or
  • a current land tax assessment including the land item (the due date for these items must not have passed).

You can still also pay by bank cheque at a Revenue NSW approved settlement room.

Request an update online

You can request an updated or existing certificate online. You’ll need your enquiry ID and correspondence ID from your clearance certificate application.

  • This option is available for all certificates issued in the past 13 months and will provide you with a copy of an existing certificate or an update of the existing certificate for the same tax year.
  • Payments made to us through a financial institution, Australia Post or by credit card are generally processed overnight.
  • Allow 10 working days to process a request and sufficient time for the payment to be processed before requesting a new version of the clearance certificate.

If your certificate still shows a land tax charge after requesting a new version, contact us.

Foreign persons

Foreign owners of land in NSW need to pay a land tax surcharge.

  • This may show on your clearance certificate even if the land is clear of all other taxes.
  • If this information is incorrect, go online and update your details. You'll need your client ID and correspondence ID.