Buying or Selling Property? The 1 July Tax Problem You Didn’t Know You Had
Submitted about 6 years ago by Alan Barry
I have just read an article by our Auditor; Simeoni that is extremely important if you are buying or selling real property in Australia after the 1st July 2016.
New rules to prevent foreign residents avoiding tax when they sell Australian property will affect everyone buying or selling property with a market value of $2 million or more from 1 July 2016.
What "property" is affected by the new rules?
The new withholding rules capture:
- Taxable Australian real property – such as residential property, commercial property, land etc., situated in Australia as well as certain mining, quarrying or prospecting rights;
- Indirect. Australian real property interests (i.e., shares in a company or units in a trust where certain conditions are met). This is generally where most of the value of the company or trust relates to real property holdings in Australia; and
- Options or rights relating to the points above.
Please read the whole article in the Simeoni Newsletter