Other Measures Of Interest
1. GST Measures
From 1 July 2018, If you buy a new residential property, you will now be required to remit the GST directly to the ATO as part of the settlement of the property.
2. Foreign Buyers of Australian Property
Foreign and temporary tax residents will be denied access to the Capital Gains Tax main residence exemption with effect from 7.30pm AEST on 9 May 2017. For those foreign and temporary tax residents with existing main residences, the CGT exemption will remain in force until 30 June 2019. If they continue to hold the main residence after that date then they will lose the CGT main residence exemption.
The CGT Withholding Tax rate for foreign tax residents will increase from 10% to 12.5% with effect from 1 July 2017. Further, the threshold for the property value before the CGT Withholding Tax for foreign tax residents will be payable will reduce from $2.0m to $750,000. This reduction in the threshold will also take effect from 1 July 2017.
Property developers will be limited to selling no more than 50% of new developments to foreign purchasers where the development is multi-storey and has at least 50 dwellings. This 50% ownership limit relates only to the number of dwellings – not the dollar value of the dwellings within the development.
Foreign property owners who leave their residential properties unoccupied or not available for rent for 6 months or more each year will have to pay an annual charge equal to the foreign investment application fee imposed on the property at the time it was first acquired.
If you would like further information about how the Federal Budget will impact your superannuation please contact the office 03 9629 1433
