What does REW mean in ACCOUNTING

Real Estate Withholding, or REW, is a system of collecting tax for certain property transactions. It requires the buyer of a property over 0,000 to withhold 3% from the purchase price and pay it directly to the Australian Tax Office (ATO). This withholding amount includes both Capital Gains Tax (CGT) and Goods and Services Tax (GST) if applicable.

The person liable for paying REW depends on their role in the sale transaction. Generally speaking, the buyer of the property must withhold 3% of the purchase price at settlement and forward it to ATO. However, if they are just repaying a loan secured by mortgage then they are not responsible for any REW payments.

Buyers are required to pay their withholding amount within 14 days of settlement or 14 days from completion of transfer documents for off-the-plan sales. Failure to meet this deadline can result in penalties from ATO.

In these cases, you may be able to apply for an extension from ATO or negotiate an alternate payment plan with them. Alternatively, you can also set up a special account which will enable you to make periodic payments until your debt has been cleared completely. This may require collateral but could be helpful if you find yourself short on funds during settlement period due to various reasons such as insufficient savings or delay in closing fees etc.

Yes - you can apply for a rebate if you meet certain criteria such as being eligible for a capital gains tax concession or being entitled to GST credits etc. It's important however that you understand all requirements set by ATO before attempting this as failing to comply with their guidelines could lead to further penalties including interest charges etc.