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.
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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
Information for settlement agents
Source: 10/5/2018 Department of Finance website HERE
“The formal billing schedule for land tax assessments is generally between October and December each year. As such, a 'Certificate of Land Tax Charges' issued prior to an assessment will always be an estimate.
Consider whether any exemptions may apply to the property being sold.
Single ownership rate of land tax
A 'Certificate of Land Tax Charges' will include both the proportionate land tax and the single ownership figure. If you are a managing agent, the latter can also be obtained by inserting the unimproved valuation of the land and the appropriate assessment year into the land tax calculator.
If a 'Certificate of Land Tax Charges' is issued for a property with a memorial registered under section 76 of the Taxation Administration Act 2003, please contact the Recovery Branch to obtain important information.”
Source: 10th May 2018 AICWA e-Newsletter
New Commonwealth Government legislation came into effect on 1 July 2017 requiring more information to be provided to the Australian Taxation Office (ATO) when ownership of a property changes. This applies to all buyers and sellers across Australia. The requirements are a COAG initiative to enable the ATO to develop consistent and comparable datasets in the national database, which will reduce tax error and increase tax compliance.
Every state and territory is implementing the data collection in accordance with individual state legislation. In Western Australia this initiative has been led by Landgate, supported by the Office of State Revenue.
Section 43A of the Land Tax Assessment Act 2002 provides a concession for the amount of land tax payable on subdivided lots owned at 30 June each year.
This concession allows subdividers to pay land tax and metropolitan region improvement tax on the lower undeveloped or englobo value of land holdings, rather than the full subdivided value of lots, for one year after the creation of the lots.
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