New Australian property tax20 June 2016 by News Desk
The new law will require buyers and sellers of properties valued at more than $2 million to prove they are Australian citizens.
The new Australian property tax involves providing proof of citizenship in the form of a Clearance Certificate.
If proof of citizenship cannot be provided then 10 per cent of the sale price must be paid to the Australian tax office.
The new Australian property tax is set to generate around $330 million in revenue over the next four years. The new law has been introduced in a bid to balance the Australian property market and will hit foreign investors..
Complying with the new Australian property tax will also affect lawyers and real-estate agents who must ensure that clients are both aware of, and comply with the new rules when buying or selling property.
“With the value of property continuing to increase this new law is bound to impact more and more buyers and sellers,” says Darrell Todd, founder of thinkingaustralia. “For non-Australian citizens it is an additional Australian property tax.”
The Real Estate Institute of Australia supports the new legislation and says it is long overdue.
New Australian property tax
The new Australian property tax will affect many of the cities where foreign property investment is highest.
Darwin currently tops of the list of popular investor destinations with 42.9% of all residential property owned by investors.
The Gold Coast ranks second highest for foreign ownership with 32.8% of all residences owned by investors.
Property most popular among investors has been inner capital city apartments followed by lifestyle, regional and mining areas.
In the past 12 months around 338,785 houses and 131,339 apartments were sold across Australia. House sales have fallen by 4.1 per cent lower and sales of units/apartments are down by 10.3 per cent according to industry surveys.
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