Do you deal with property? Are you aware that from 1 July 2016, all property transactions over $2 million in value will require the vendor to withhold 10% of the market value of the property and pay this to the Australian Taxation Office?
Designed to ensure foreign residents declare the capital gains on property sold in Australia, these new laws will engage all Australian residents into a compliance process to be completed prior to the settlement of any property transaction over $2 million.
These transactions include the following Australian assets:
- All real property, including residential and commercial property, leaseholds and strata titles
- Mining, quarrying or prospecting rights
- Lease premiums for the grant of leases on property
- Interest in Australian entities whose majority assets consist of assets listed above including options and rights to acquire the above
For more information, go to:
new 10 percent withholding property transactions