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Checked 5 October 2026

Purchaser payment notification: how to lodge it and pay at settlement

A purchaser payment notification (PPN) is the ATO form a buyer lodges when they must withhold foreign resident capital gains withholding from the price and pay it to the ATO. The ATO says it needs to be lodged on or before the day of settlement. Lodging online is the preferred method because the payment reference number and payment slip are issued faster. This was checked on 12 October 2026 against the ATO's PPN form page (updated 18 August 2026) and its payment guidance (updated 9 October 2026).

The form is lodged by the purchasers or on their behalf by a third party, for example a solicitor or conveyancer. For the wider rule, see foreign resident capital gains withholding for buyers.

When a PPN is needed

You lodge a PPN when you have to withhold. The ATO says that applies if you buy Australian real property and the vendor does not provide a valid clearance certificate or variation notice. The rate is 15% of the sale price (or market value) for all property under contracts signed from 1 January 2025. The ATO's page on the withholding rate shows a 12.5% rate for property of $750,000 or more where the contract was signed earlier.

If the seller does provide a valid clearance certificate, the ATO says you do not need to withhold. If you have lodged a PPN in error, or receive a valid certificate or variation notice by the settlement date, the ATO says you can cancel the lodged PPN by phoning 13 28 66.

Your nationality and visa status do not decide this. A foreign buyer with FIRB approval follows the same steps as any other buyer.

The ATO's instructions say the form needs to be lodged with it on or before the day of settlement, and the withholding is paid at settlement using the reference number it issues.

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What information the form asks for

The ATO's form instructions list three groups of details:

  • Vendor: name and entity type, address, and a tax file number or ABN (the ATO's paper form notes this is optional but recommended). You also supply each vendor's percentage of ownership.
  • Purchaser: name, entity type, Australian residency status and contact details, plus each purchaser's percentage of ownership.
  • The property and the deal: the property address and legal description, the contract date, the settlement date, the asset type and the total sale price.

The steps

  1. Check what the seller has provided. The seller must give you a clearance certificate or variation notice at or before settlement. If it is valid, no withholding is needed.
  2. Lodge the PPN online. If there are 10 or fewer purchasers, the ATO says to lodge one form. If there are more than 10, lodge additional forms.
  3. Note the payment reference number. On submission, the ATO shows an on-screen message with a confirmation number and a payment reference number (PRN). Only one PRN is issued per form, even when several purchasers are on it. Keep it safe. The ATO also provides a link to a downloadable payment slip with a barcode.
  4. Check the form before settlement. The ATO says to contact it if the settlement date on the form changes.
  5. Pay at settlement. Payment is due on or before the day you become the owner.
  6. Give the seller the payment confirmation. The seller needs a copy to claim the credit in their tax return.

How to pay

The ATO accepts payment by:

  • BPAY.
  • Electronic funds transfer.
  • E-conveyancing, where the purchaser or their representative transfers the funds through the platform.
  • Australia Post, using the barcode on the payment slip.

All payments must be in Australian dollars. The ATO says to keep your receipt as proof of payment.

A worked example with two purchasers

Two buyers purchase a $1.2 million apartment as joint owners, 60% and 40%, from a foreign resident seller with no variation notice.

  • Total withholding at 15%: $1,200,000 x 15% = $180,000.
  • Purchaser A (60%): $180,000 x 60% = $108,000.
  • Purchaser B (40%): $180,000 x 40% = $72,000.

The ATO says purchasers withhold according to their percentage of ownership. With one PRN, they can pay the total in one payment or in separate payments, giving the details of how it is apportioned. The seller claims the credit for the amounts paid, using the payment confirmation.

The ATO's form instructions say a solicitor or conveyancer can lodge a PPN on the purchaser's behalf, and it describes e-conveyancing as a way to pay without manual processing. Questions to ask your legal representative:

  • Will they lodge the PPN, and when?
  • Who will check the seller's certificate or variation notice?
  • Does the quote include this work, and how will the withholding amount appear in the settlement statement?

If it goes wrong

The ATO says a purchaser who fails to withhold and pay at or before settlement may face a penalty equal to 10 penalty units or the amount they failed to withhold. If you withhold but do not pay when you become the owner, the general interest charge applies from the settlement date.

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Frequently asked questions

How early can I lodge a purchaser payment notification?

The ATO's instructions say the form needs to be lodged on or before the day of settlement. The pages reviewed for this guide do not give an earlier limit. The form asks for the contract date and the expected settlement date, so both need to be known first.

Is there more than one payment reference number?

No. The ATO says only one PRN is issued per PPN form, even if several purchasers are listed on it, and to keep it safe. Purchasers sharing the PRN can pay the total in one payment or make separate payments, and the PRN is how the ATO matches the money to the form.

What if the settlement date moves?

The ATO says to check the PPN form before settlement and contact it if the settlement date on the form has changed. The ATO's pages reviewed do not describe a separate amendment process. The number its guidance gives for related queries, such as cancelling a PPN, is 13 28 66.

Does a foreign buyer lodge it from overseas?

The ATO's instructions reviewed for this guide do not restrict where the purchaser is. The form can be lodged by purchasers or by a solicitor or conveyancer on their behalf, and payment must be in Australian dollars, which matters for anyone sending funds from overseas.

Sources

Checked 5 October 2026.

firbapproval.com.au is an independent guide. It is not affiliated with, endorsed by or connected to the Foreign Investment Review Board, the Australian Treasury or the Australian Taxation Office. We do not lodge or process applications. Applications are made to the ATO. General information only, not legal, tax, migration or financial advice.