Tax Changes From 1 July 2017

6/15/2017
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Budget 2017 Update 
GST On New Residential Purchases 
From 1 July 2018 the Federal Government will require all purchasers of new residential premises (new builds) to remit the GST component previously provided by developers/builders directly to the ATO as part of the property settlement process.
Little is known of the changes other than what has been recently posted on the ATO website HERE

AIC National along with various key industry stakeholders are conferring with the ATO tomorrow via a teleconference.
The AICWA is deeply concerned that Settlement Agents in Western Australian are not recognised to assist or facilitate the collection and remittance of GST to the ATO.

Foreign Resident Capital Gains Tax
Members will recall ATO Legislation that took effect as of July 1st 2016 requiring that all sales over $2m be assessed to determine what (if any) Capital Gains Tax (CGT) liability exists for foreign investors depose of real property. In the recent 2017 Budget two significant changes have occurred.

  1. The withholding rate on capital gains tax that foreigners must pay will increase from 10% to 12.5%from July 1st 2017
  2. Withholding requirements will now apply to the sale of properties of $750,000.

Details of the change can be viewed HERE
As with changes to GST collection for the sale of new residential premises the AICWA is concerned that Settlement Agents in Western Australian are not recognised to assist or facilitate in the collection and remittance of CGT to the ATO.
Further updates will be provided once the AICWA is able to ascertain what processes are being proposed. The AICWA has previously insisted that the ATO recognise the expertise of Licensed Settlement Agents to facilitate the remittance of CGT and had hoped that necessary changes would have occurred prior to any amendment to the current thresholds.

Source: AICWA May 2017 Budget Update.

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