ByLawyers News and Updates

VIC – State Revenue Office amendments

by

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.

Land Tax

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.

 

QLD – Office of State Revenue amendments

by

First Home Buyer Grant

The First Home Buyer Grant of $20,000 has been extended to 31 December 2017.

Land tax

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.

NSW – OSR changes

by

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.

SA – Revenue SA changes from 22 June 2017

by

Off the plan apartments.

A $10 000 grant will be provided to eligible off-the-plan apartment purchasers where the contract is entered into between 22 June 2017 and 30 September 2017.

Off-the-plan stamp duty concession.

From 22 June 2017 the off the plan stamp duty concession no longer applies to foreign purchasers. Generally the concession has been extended until 30 June 2018 .

Land tax exemption

A five year land tax exemption will apply to eligible apartments bought off-the-plan where the contract is entered into between 22 June 2017 and 30 June 2018.

Foreign purchasers – From 1 January 2018

A stamp duty surcharge of 4% will apply to foreign purchasers of South Australia residential property.

From 1 July 2017 – Foreign Resident Capital Gains Withholding Payments

by

For contracts entered into on or after 1 July 2017 the new foreign resident capital gains withholding (FRCGW) rate and threshold will apply to:

  • real property disposals where the contract price is $750,000 and above (currently $2 million); and
  • the FRCGW withholding tax rate will be 12.5% (currently 10%).

All precedents and commentaries were updated to reflect these changes.

QLD – Stepchild includes child of party to de facto relationship

by

The definition of a stepchild has been extended to include the child of a party to a de facto relationship, so a stepchild of the de facto testator is capable of bringing a claim against the testator’s estate as the deceased step-parent: s 40A Succession Act 1981.

Contract for Sale of Shares – Extensive

by

A new precedent has been provided. The Contract for the Sale of Shares – Extensive covers many of the issues that may arise in complex transactions. It may be found in our Companies, Trusts and Partnership Guide in the Companies section within Deeds and agreements.

Connect with us