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:
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.
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.
No outstanding land tax means the property is ‘clear’. This may mean:
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
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 can apply for a clearance certificate through one of these client service providers:
You will need to choose an enquiry type when applying.
If you’re the vendor, you’ll need to provide information for each buyer:
You can pay by BPAY during settlement via an approved electronic lodgement network.
At settlement you will need to present:
The charge on the land will be considered removed upon payment of the amount shown on these documents.
You can request an updated or existing certificate online. You’ll need your enquiry ID and correspondence ID from your clearance certificate application.
If your certificate still shows a land tax charge after requesting a new version, contact us.
Foreign owners of land in NSW need to pay a land tax surcharge.