For the most part there are very few changes in the 2018 Federal Budget targeting the property industry. Some interesting points of note include: Property owners who leave vacant land undeveloped, otherwise known as “land banking”, will no longer benefit from tax incentives Home buyers, particularly first home buyers looking to create a deposit for purchasing a home will be able to store their savings in their superfund tax free. Australians over the retirement age can now access the equity in...
Contracts dated 1 July 16 on wards, will have the new requirements on ALL transactions with market value of $2 million or over. Unless the Seller provides an Australian Taxation Office (ATO) ‘clearance certificate’ for each registered proprietors name (matched to the title) to the buyer 2 business days prior to settlement (-timing subject to REIWA special condition).Then the Buyer must withhold 10% of the Purchase price (more specifically the ‘First element of the cost base’-Capital Gains Tax defined term)...
Legislation will take effect as of July 1st 2016 requiring that ALL real property transactions over $2m be assessed to determine what (if any) Capital Gains Tax (CGT) liability exists. There are many different scenarios which include multiple buyers or sellers and variations to the amount held.In circumstances where there are multiple buyers (ie. A farmer has sold his farm off in separate lots) but the aggregated market value is over $2 million, the Seller will be required to provide a clearance certificate. If not each Buyer...
Background: The former government announced on 14 May 2013 that it would introduce a 10% non-final withholding tax on payments made to foreign residents that dispose of certain taxable Australian property. The Bill for this measure, introduced by the current Government has been passed and received Royal Assent on 25 February 2016. The new withholding regime will apply to contracts entered into on or after 1 July 2016. Broadly, where a foreign resident disposes of certain taxable Australian property, the purchaser will...
