property investment

3 Special Conditions to Watch Out For in Land Contract Sales

Everyone knows the importance of having a solicitor look over your land sale contract when buying your dream home. However, apart from the standard s32 conditions you or your solicitor should be aware of any special conditions attached to your sale of land contract. While special conditions are quite common and subject to mutual agreement by both purchaser and vendor, the way they are drafted may have severe impact on the execution of the contract especially if not looked at carefully.

What are special conditions?

Special conditions are additional conditions apart from the standard conditions in a Contract for The Sale of Land.

Need to Know: New Foreign Resident CGT Withholding Tax

What is the change?

On Friday July 1 2016, the rules for all transacting dwellings and commercial property worth over $2 million will change. A 10% non-final Capital Gains Withholding tax will be incurred on these transactions at settlement. This will affect all transactions and including those by Australian Residents

The new legislation imposes an obligation on purchasers to withhold 10% of the purchase price and pay it to the ATO where a seller enters a contract after 1 July 2016.

Never be caught by unexpected changes in Australian property law.

How will the Stamp Duty Increase Affect You?

From the 1 July 2016, there will be an increase in stamp duty for foreign buyers from 3% to 7% in Victoria.

There will also be an increase in the land tax surcharge for absentee landlords from 0.5% to 1.5% for the 2016/2017 tax period.

Who is a foreign person?

A foreign person is anyone except

  • An Australian citizen
  • An Australian permanent resident
  • A New Zealand citizen with a temporary Australian Visa

When will the new stamp duty apply?

The new rate will apply to contracts entered into or after 1 July 2016.

Changes to Foreign Investment Rules You Need to Know

What’s happening?

The Australian Federal Government has been cracking down on loop holes in foreign investment with stricter foreign investment rules in place since December 2015. Under the new regime, the penalties for breaking the rules are tough. Compliance to the new rules and its enforcement has been strengthend with the ATO aiming to cover more than 600 million transactions annually.

So how do you avoid getting on the wrong side of the ATO?

Do the new rules apply to you?

The Foreign Investment rules apply to ‘a foreign person’ who is defined as someone who is not ordinarily a resident in Australia.