Thanks to the R.E.I.W.A. in depth analysis...
‘Business as usual’ budget fails to reinvigorate property market.
REIWA welcomes the WA Government’s decision not to increase property taxes, but is disappointed in the distinct lack of leadership on display in the 2018-19 State Budget, with no new initiatives included to address housing affordability or reinvigorate the property sector.
REIWA President Hayden Groves said while it was pleasing there were no increases to property taxes, this year’s budget was a mundane budget for the property market.
For the most part there are very few changes in the 2018 Federal Budget targeting the property industry. Some interesting points of note include:
Like a scene from a piece of famous literature, Landgate will be scoped, to see what the current government can scrape together to prop up their budget.
Media statement here.
Other States media articles include;
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 be required to withhold 10% of the purchase price*.and pay that amount to the Australian Taxation Office (ATO). .
* Note: the legislation specifies that the 10% withholding is actually on the "first element of the cost base". However, as purchase price is understood by vendors and purchasers, and in many instances will equate with the "first element of the cost base", we have used the term purchase price for simplicity.
Just in case you missed it, the $3000 First Home Owner Grant was removed for eligible contracts dated from and including 3 October 2015. Here's the run down...
The good news is this only affects existing residential properties. However where eligible you should still be able to attain the 'First Home Owner Transfer Duty Concession' namely Nil duty for approved First Home Owners in the price $430k and under, then scaled up to normal levels up to $530k.
The 'New Homes' Grant of up to $10k currently remains in place for approved First Home Buyers. Along with Transfer Duty Concessions within the above mentioned ranges.
The change in FHOG
According to the Office of State Revenue, the first home owner grant (FHOG) is a one-off grant payable to first home owners that satisfy all the eligibility criteria.
Download a free copy of the 'First Home Owner Grant' fact sheet below, or for an explanation of these changes in plain English, contact Damien at A1 Conveyancing to check where you stand.
2015/16 Western Australian State Budget The Western Australian State Budget was handed down on 14 May 2015.
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