FOREIGN LANDHOLDER DUTY
From the 1 January 2019 there is a new Stamp Duty imposed on foreign buyers.
Complicated - Yes. More revenue - yes. Do you need to be aware that you may have to borrow a bit extra to cover the stamp duty - Yes.
So in a nutshell, if you are an Australian citizen and your partner is a foreign citizen and you are both purchasing a property, then you will be subjected to the normal stamp duty rate plus a further 7% of the purchase price for the share of the foreign owner.
If you are buying in a Trust or a Corporation the rules are different again. Click the link for further information.
Under the Duties Act 2008 (‘Duties Act’), landholder duty is imposed on certain acquisitions of an
interest in a corporation or unit trust that holds land in Western Australia valued at $2 million or more.
From 1 January 2019, the Duties Act imposes additional duty on certain acquisitions by a foreign
person, or someone related to a foreign person, of an interest in a landholder that holds residential
property (a residential landholder).1 The additional duty is calculated at a rate of 7% based on the
value of residential property and associated chattels held by the landholder and the extent of the
interest acquired by the foreign person or a foreign related person.
First Home Buyers Grant
effective from 1.1.2017
First home buyers of vacant land with a building contract or newly built homes not lived in may be entitled to the First Home Owners Grant and rebate on Stamp duty.
The boost to the First Home Owner Grant (FHOG) - from $10,000 to $15,000 - takes effect 01/01/2017
If you are First Home Buyer and purchase an established home under $530,000.00 you may be entitled to the First Home Owners Rate of Stamp Duty therefore a reduction in the Stamp Duty to be paid. Contact your bank or broker to apply.
DUTY CHARGES (STAMP DUTY)
Calculation of duty - how much duty and what are the rates
Click on the different rates below :
General rate of duty – Vacant Land with no building Contract, Commercial Property
Residential rate – applies to transactions involving residential property
First home owner rate – reduced rate for first home buyers - refer to the link now amended
FIRST HOME BUYERS FEE ASSISTANCE
The Fee Assistance Scheme
The scheme provides a grant of up to $2,000 for the settlement, mortgage premium and lending costs of first home buyers when they purchase an established or partially built home through a licensed Real Estate Agent for the purchase price of $400,000 or less.
If you do not purchase the property through a licensed Real Estate Agent you do not qualify for this assistance as it is funded by interest on Real Estate Agents trust accounts.
An Application can be downloaded by clicking on the link below :
Sold a Property over $750,000
Under the new Australian Taxation Law when a property is sold for $750,000.00 or more you as an owner are required to provide a Foreign Residential Capital Gains Withholding Clearance Certificate.
The certificate must be in the name of each person shown on the title so if more than one party owns the property then all parties must make the application and provide a clearance certificate in each name as shown on the Certificate of Title. If the property is in the name of a Trust, then we recommend you seek advice from your accountant immediately (refer link below).
The Certificate must be provided prior to settlement to this office to pass onto the Buyer on settlement. If the Certificate is not provided, the Buyer must withhold 12.5% of the Purchase Price from you at settlement and send to the Australian Taxation Office.
You can either :
- Download and follow the link https://www.ato.gov.au/Forms/Capital-gains-withholding-clearance-certificate-application-online-form-and-instructions---for-Australian-residents/ and complete the online Application yourself
- contact your Accountant and arrange for them to carry out the Application on your behalf
What is Land Tax?
Land Tax is a tax charged by the State Government on a property. If you purchase a property as your primary and principal place of residence Land Tax should not apply depending on the property type. Click on the following link to go directly to State Revenue for more information:
Information on moving
When do I have to move out if I have sold the property I reside in?
You must vacate your property by 12 noon the day following settlement unless there is an agreed arrangement between all parties to the Contract.
We are so excited to move into our new house when can we have access?
If the property is vacant on settlement you can collect your keys direct from your Real Estate Agent and access the property on completion of settlement. If the property is occupied then the Seller or Tenant has until 12 noon the day following settlement to move out and then you can access the property.
Who to contact when you move?
- Doctors / Specialist Office
- Paper delivery
- Insurance and Superannuation companies
- Phone Company
- Loan Companies
- Electricity Company
- Gas Company