The indexed amounts have been updated and commentary about Notice of Accident has been included.
The asset test threshold amounts have been updated in the wills retainer instruction precedents.
A provision has been included in the will precedents to provide for the resignation of a trustee without being replaced, provided one remains.
New land tax online smart form Deceased estate – Commencement or completion of administration (LTX-Trust-18).
This form replaces the paper forms LTX-Trust-13 and LTX-Trust-14, which will not be accepted beyond 30 September 2017.
A new ‘tear off’ assets and liabilities list has been added to the retainer instructions Wills, powers of attorney precedent. This list may assist clients when they wish to provide more detail in their planning, as well retained by the client with their personal documents.
Some amendments to the Dog and Cat Management Act 1995 came into effect 1 July 2017 including new registration categories: Standard Dog – for a de-sexed and micro-chipped dog; and Non-standard Dog – being all other dogs including dogs for breeding and working dogs on farms.
Coming in on 1st August new minimum welfare conditions that must be met.
Further requirements associated with de-sexing and micro chipping will come into force 1st July 2018.
From 1 July 2017:
- exemption of transfer duty for transfers between spouses is only available for principal place of residence. Transfers following breakdown of relationship are unchanged and the exemption continues to apply to all properties.
- off-the-plan duty concession is restricted to properties acquired by owner/occupiers who are eligible for the principal place of residence or first home buyer duty concessions.
- First Home Buyers:
- Who purchase a property to the value of $600,000 will pay no duty, with concessions available for properties between $600,000 and $750,000.
- Who purchase in regional Victoria a new home to the value of $750,000 may apply for the First Home Owner Grant of $20,000. Criteria includes the property must be the applicant’s principal place of residence for a continuous period of 12 months, moving in within 12 months of completion.
- From 27 June 2017 Australian Defence Force personnel enrolled to vote in Victoria on duty or on leave are exempt from the residence requirement for the First Home Owner Grant.
From 1 January 2018, vacant residential properties in the inner and middle ring of Melbourne will be subject to a vacant residential land tax of 1 per cent of the property’s capital improved value. A property will be considered vacant if it is unoccupied for six months or more in a calendar year. The six months does not need to be continuous. There are exemptions for many properties including for vacant land.
First Home Buyer Grant
The First Home Buyer Grant of $20,000 has been extended to 31 December 2017.
An ‘absentee surcharge’ introduced from the 2017-2018 financial year. A 1.5% surcharge will be imposed on individuals not ordinarily residing in Australia and who are liable for land tax.
First Home Buyers $20 000 First Home Owner Grant extended to 30 June 2018.
First Home owner
- First Home New Home scheme ended 30 June 2017 and was replaced by First Home Buyers Assistance scheme. From 1 July 2017 first home buyers of new OR existing homes to the value of $650,000 will pay no duty. Concessions are available between $650,000 and $800,000. There is no change to the caps for vacant land which are exemption to $350,000 and concession from $350,000 – $450,000.
- First Home Owner Grant (New Homes) scheme property caps are amended from 1 July 2017. The cap for purchasing a new home is $600,000, or $750,000 for the house and land when building a new home under a home building contract or by an owner builder.
Shared Equity Scheme.
A person may purchase a property with an approved equity partner. Subject to eligibility the home buyer may apply for first home buyers assistance and grants. Subsequent transfers from the equity partner to the home buyer are exempt from duty. Principal place of residence land tax exemption is applicable from 2018 tax year.
New Home Grant scheme.
The $5,000 grant for any purchaser of a new home ends 30 June 2017.
Payment of duty in off the plan purchases.
From 1 July 2017 the 12 month duty liability deferral is only available to purchasers who declare their intention to occupy the property as their principal place of residence. If the property is not occupied for 6 months commencing within 12 months of completion interest and penalty tax apply from the lability date.
Foreign Purchaser Surcharge Duty.
Foreign Purchaser Surcharge Duty has increased from 4% to 8% .
Commercial residential property is exempt – retrospective to 21 June 2016.
Permanent residents, including NZ citizens holding a special category visa, are exempt from the surcharge on their principal place of residence if they occupy the home for a continuous period of 200 days within 12 months of purchase.
Australian-based developers will pay surcharge purchaser duty when purchasing the land however may be entitled to a refund on the sale of a new home built by them, if they are an Australian corporation.
Foreign Person Land Tax Surcharge.
From the 2018 tax year the surcharge land tax rate will increase from 0.75% to 2% and commercial residential property will be exempt. Permanent residents, including NZ citizens holding a special category visa, are exempt from the surcharge on their principal place of residence if they occupy the home for a continuous period of 200 days within the land tax year.
Australian-based developers will pay surcharge land tax, however may be entitled to a refund on the sale of a new home built by them if they are an Australian corporation.