Often referred to as the Great Australian Dream, home ownership in Australia is celebrated by many as one of life’s major milestones.
We’re a nation of property investors, with many Australians investing in property as a source of long-term financial stability. Thanks to the ever-increasing popularity of real estate, property investment is also a trend that is likely to continue to increase.
Whether you are a first home buyer or an experienced property investor, buying and selling property is a daunting legal transaction. To complicate matters, with laws in this area constantly changing, even if you have bought or sold property in the past, there’s a good chance the laws may have changed since.
As an example, two new laws have recently been introduced, that can have huge implications for both buyers and sellers and could leave you thousands of dollars out of pocket.
Surcharge Purchaser Duty & Yearly Land Tax
Did you know that if you are purchasing real estate in New South Wales, you must prove that you are an Australian citizen by statutory declaration and identification? If you fail to take this step, the State will deem that you are a foreign citizen which can have several financial implications. Revenue NSW will impose a surcharge purchaser duty and in addition, you may also be liable for a yearly land tax that would otherwise not be imposed.
Foreign Investment Tax
New regulations surrounding foreign investment mean that if you are disposing of real estate and the contract price or market price is $750,000 or more, you need to provide the purchaser with a Foreign Resident Capital Gains Withholding Clearance Certificate. If you fail to take this step, the purchaser or transferee must remit 12.5% of the total price or value to the Australian Taxation Office rather than to you. This applies to every sale or transfer of $750,000 or more, including your own home.
Tonkin Drysdale Partners has been looking after sellers, buyers, landlords and tenants of residential, industrial and commercial property for more than sixty years. If you’re thinking of buying or selling a property get in touch today to find out more about how the team at TDP can help you.
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Get started with a free 15-minute phone consultation. Connect with one of our experienced Estate Litigation lawyers to discuss your situation and explore how we can assist you. This brief call is an opportunity for us to understand your needs and for you to determine the next steps. We’ll reach out to you, and you can then decide if you’d like to book a longer consultation or take immediate action.
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