Property 101: July 1 2016 new property taxes and charges

Property 101: July 1 2016 new property taxes and charges
Property 101: July 1 2016 new property taxes and charges

National

New withholding regime applies to foreign resident vendors. For property transactions of $2 million-plus, purchaser must withhold 10 per cent of price unless vendor shows a clearance certificate from the ATO.

FIRB application fees will be indexed for CPI.

Victoria

Foreign buyers will pay 7 percent additional stamp duty on residential property, up from 3 per cent. 

The government has increased the variable rate for the Fire Services Property Levy (FSPL) on industrial property by 11 percent and commercial property by 6 percent. The variable rate for the FSPL on vacant land will rise 240 percent.

Queensland

First Home Buyers Grant to increase from $15,000 to $20,000.

Foreign investor changes do not come into effect until October 1.

NSW

Foreign buyers of residential property pay additional stamp duty of 4 percent on transactions from 21 June, 2016. Separate 0.75 percent land tax surcharge on residential real estate owned by foreigners starts in 2017 land tax year (January). Foreign investors no longer entitled to 12-month deferral for the payment of stamp duty for off-the-plan purchases of residential property. Foreigners lose tax-free threshold for land tax surcharge.

Mortgage duty abolished.

Duty on the transfer of business assets or a declaration of trust over "business assets" (other than land) will be abolished from July 1, 2016.  This will mean that when buying retirement villages, value will need to be apportioned between the land and business assets.

WA

No changes

SA

Stamp duty concessions of up to $15,500 apply for eligible purchases of off-the-plan apartments (effective from June 20, 2016).

Tasmania

Stamp duty removed from land or asset transfers as part of business reconstruction.

ACT

Commercial rates: Average increase of 7 percent in 2016-17 with a fixed charge of $2235.

Commercial stamp duty: Reductions from 1.8 percent to 1.48 per cent for transactions up to $200,000; between 3 percent and 2.5 percent for $200,00 to $300,000; and reductions from 5.17 percent to 5.09 percent above $1.455 million.

Fire and Emergency Services Levy: A valuation-based charge will apply for commercial properties with progressive marginal rating factors applied to the average of the 2014, 2015, and 2016 AUV values.

General Insurance Duty: To be abolished.

Land Tax: Fixed component will rise by $100 and land tax calculation for multi-unit dwellings will be based on total AUV value of the land rather than individual AUV of the unit.

NT

50 per cent stamp duty discount for first home buyers of established homes valued up to $450,000 and capped at $10,000 thereafter.  This took effect on May 24, 2016, and will continue until June 30, 2017.

 

For more information, go to the Property Council of Australia website here.

Tags: 
Stamp Duty Property Tax

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