Foreign Buyers Duty
For transactions executed on or after 1 January 2019, an additional 7% duty will be chargeable on the dutiable value of certain acquisitions of residential property by foreign buyers.
Each person acquiring land in Western Australia must complete a foreign buyers declaration form HERE declaring whether they are a foreign person.
The Online Duties system will be modified to allow self-assessment of most dutiable transactions that are chargeable with foreign buyers duty.
For the purposes of the foreign buyers duty, residential property is –
1. land in Western Australia that is, or is capable of being, or is intended to be, used solely or dominantly for residential purposes;
2. vacant or substantially vacant land that is zone solely for residential purposes; or
3. any estate of interest in land described in (1) or (2).
A foreign person includes a foreign individual, corporation or trust.
See the foreign transfer duty HERE and foreign landholder duty fact sheets HERE for information about foreign persons and residential property.
Exemptions or nominal transfer duty
Most dutiable transactions that would be eligible for nominal duty or an exemption from transfer duty will also be exempt from foreign buyers duty. This includes certain transactions involving family court orders and matrimonial agreements, deceased estate transactions and partitions of residential property.
Face-to-face customer education sessions commenced in December 2018. Visit our OSR's education page to register now for upcoming sessions HERE.
Foreign buyer duty publications, frequently asked questions and other support material is available HERE
For more information on foreign buyers duty, see the legislation available on the Western Australian Parliament website HERE
Watch the Video HERE
Source: 19th December 2018 AICWA e-Newsletter
CIRCULAR 17 DUTIES ACT 2008
Foreign Buyers Duty
The Duties Amendment (Additional Duty for Foreign Persons) Bill 2018 (‘the Bill’) was second read into Parliament on 13 June 2018. The Bill operates to amend the Duties Act 2008 (‘Duties Act’) to impose additional duty on certain transactions involving foreign persons or entities acquiring residential property in Western Australia.
These amendments are subject to the passing of the Bill by Parliament and the granting of Royal Assent. The changes are proposed to come into effect on 1 January 2019.
The information provided in this circular is not an exhaustive explanation of the amendments, and reference should be made to the Bill and the Explanatory Memorandum available on the Western Australian Parliament website.
READ MORE HERE
Duty Training Sessions
AICWA will be liaising with OSR to deliver training opportunities to facilitate the Foreign Buyer Duty remittance. Stay tuned for more!
Source:10th October 2018 AICWA e-Newsletter
Just a reminder that GST is now a query of every Residential contract dated on & post 1/7/18.
Not just the obvious ‘new land or new builds’, since ‘New Residential Premises’ under the Taxation administration act, may still be quite aged properties!
“The term ‘new residential premises’ is defined in s 40-75 of the GST Act:
Residential premises are new residential premises if they:
a. have not previously been sold as residential premises and have not previously been the subject of a long-term lease; or
b. have been created through substantial renovations of a building; or
c. have been built, or contain a building that has been built, to replace demolished premises on the same land.”
The AICWA have created a ‘Seller’s Notice to Buyer’ seems to be more direct about if GST is applicable or not?
Either way this new ruling is not well known, nor tested so watch this space as it is likely to develop further as time goes on.
Sympli - New e-Settlement Platform on the horizon
InfoTrack and the ASX Limited have announced the establishment of Sympli, an alternative electronic settlement platform.
The new platform is expected to roll out later this year once it has received regulatory approval.
For further information see:
Today's press release
How will you manage change in 2018?
Are you ready for:
What will the rest of 2018 serve up to conveyancers?
Don’t get left behind!
AICWA is proud to have partnered with sponsors and key industry stakeholders to deliver a broad calendar of training events. We are committed to assisting you by delivering quality training outcomes as well as providing regular updates. As the peak industry body representing conveyancers locally and nationally, our access to key industry stakeholders means we are best positioned to deliver the knowledge you need.
Source: 9th February AICWA Education e-Newsletter
The GST on property transactions measure has been introduced, as schedule 5 to the Treasury Laws Amendment (2018 Measures No. 1) Bill 2018.
The Government will strengthen compliance with the Goods & Service Tax (GST) law by requiring purchasers of newly constructed residential properties or new subdivisions to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement. The measure will require the purchaser of newly constructed residential properties of new subdivisions to remit the GST on the purchase price directly to the ATO as part of Settlement for contracts on or after July 1, 2018.
You can access the legislation as introduced along with the explanatory materials by following this link HERE.
SPEED up your banking and transfer money using an email, phone number or ABN. Here’s how to get started.
BANK customers will need to set up a PayID as a matter of urgency, to stay up to date with new technology set to arrive in Australia.
In the coming weeks financial institutions around the country will start pushing out the highly-anticipated New Payments Platform (NPP), which will deliver 24-hour, seven-day-a-week, instant transfers.
It means consumers will no longer need to share their personal banking information such as BSB and account numbers and will therefore find it much easier to move cash.
The New Payments Platform will mean instant payments for banking customers.Source:Supplied
Money will now be shifted in a matter of seconds using a PayID that links to a customer’s email address, phone number or ABN for small businesses.
The NPP’s chief executive officer Adrian Lovney said users of a PayID should be reassured that once it’s set up people can only place money into your account and not take it out.
“The only way another person can use your PayID is to put money into your account,’’ he said.
NPP’s chief executive officer Adrian Lovney said PayIDs will be a secure way to move money. Source:Supplied
“PayIDs can only be created or paid to within your financial institution’s internet or mobile banking.
“This means your PayID will be protected by the same security that applies to your internet or mobile banking.”
FAST TRANSFERS: Moving money in an instant will soon be reality
To create a Pay ID with your bank — if it is set to join the NPP, which at this stage includes the nation’s big four banks and many others — you will need to firstly do this:
— Choose what type of PayID you would like to use (most will offer phone numbers, email address or ABNs) and which account you want to link it to.
— You can have multiple PayIDs but only one PayID can be linked to one account at a time.
— You must verify with your bank that you are the owner of the information and the account with is connected.
— Your PayID will now act as a BSB and account number.
GIFT CARDS: The biggest fees shoppers will get slugged with for using a gift card
CUA’s chief executive officer Rob Goudswaard said they will start notifying their members this week of the upcoming changes to help them make a simple transition to faster payments.
CUA chief executive Rob Goudswaard said a PayID will make it easier for customers to move their own money.Source:News Corp Australia
“Set it up and be clear as what you want as your PayID and to have one it means other early adopters of NPP will able to use it to transfer money,’’ he said.
“Your need for direct debits will become a thing of the past because you can make cash transfers quickly.”
Originally published as What you need to do when instant banking arrives
Change to Western Australian Registrar and Commissioner of Titles’ Joint Practice: Verification of Identity and Authority – fraud mitigation
31 January 2018
As foreshadowed and as part of their fraud mitigation strategy, the Western Australian Commissioner of Titles and the Registrar of Titles have updated their Joint Practice for Verification of Identity and Authority (VOI Practice) for paper-based transactions. The updated VOI Practice more closely aligns to the requirements for national electronic transactions. The changes seek to improve the integrity of information in the Western Australian Land Titles Register, reduce the risk of fraud and improper dealings, and remove confusion for customers and agents operating in both electronic and paper environments.
The key changes to the VOI Practice will:
• extend the requirement for verification of identity to property buyers and caveators lodging and withdrawing caveats;
• update the categories of documents needed to support verification of identity;
• update the procedures for conducting verification of identity in a foreign country; and
• improve the procedures for self-represented parties.
Makes me laugh that "the Federal Government will strengthen compliance" BY MAKING OTHER PEOPLE DO THEIR JOB!!!! Yet another coming tax trap for buyers of new properties. GST Withholding.
From 1 July 2018, the Federal Government will strengthen compliance with the Goods & Service Tax (GST) law by requiring purchasers of newly constructed residential properties or new subdivisions to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement. Under the current law (where the GST is included in the purchase price and the developer remits the GST to the ATO), some developers are failing to remit the GST to the ATO despite having claimed GST credits on their construction costs.
The measure will require the purchaser of newly constructed residential properties of new subdivisions to remit the GST on the purchase price directly to the ATO as part of Settlement for contracts on or after July 1, 2018.
Watch this presentation for an overview of the proposed strata reforms.
The WA Government has given Landgate responsibility for delivering reforms to Western Australia's Strata Titles Act 1985.
The proposed reforms aim to provide more flexible and sustainable housing options to benefit developers, strata owners, investors, residents and tenants. They aim to improve the way strata schemes work but not to change current strata owners' land titles and boundaries.
Keep me updated, join us here...