(03) 9720 2922

Jansen Walsh and Grace

 

 


 

 

Spouse transfer exemption closes 30 June

Since 1 July, transfers of investment and rental properties between spouses and domestic partners are now subject to ad valorem land transfer duty on market value of the property. Exemptions for the principal place of residence and for transfers following a relationship breakdown remain in place. 

Rental and commercial properties are caught. This will align it with the CGT provisions in the Income Tax Assessment Act.


Tightening of investor lending

The lenders’ regulator, APRA, has directed banks to implement measures to slow the growth of lending to investors.  Several banks are already implementing further restrictions to their LVR for investment lending and making adjustments to rates for new investment lending.

 

 

 

What we do
Conveyancing is the process of buying and selling property.


Our firm has 35 years’ experience, first as Jansen Walsh & Associates, and during the last 30 years as Jansen Walsh & Grace.

We can assist you in purchasing your investment property, whether it is:

 

Abolition of off-the-plan duty concession for investors

The concession for land transfer duty for buying an investment property off-the-plan was eliminated on 1 July.

  1. commercial property;
  2. unit, apartment or townhouse;
  3. an “off the plan” purchase.

We also help you with the purchase by your SMSF or DIY superannuation fund using a limited recourse borrowing arrangement.

 

The off-the-plan duty concession is now only be available for those who intend to live in the property or who are eligible for the first home buyer duty concession.  The measure will came into effect on 1 July 2017

 

 

 

 

 

Vacant Property Tax

A 1% Vacant Residential Property Tax will be levied on dwellings that are vacant for more than a total of 6 months in a calendar year.


The tax will apply from 1 January 2018.  It will be payable on a calendar-year basis, just like land tax.

 

 

 

Properties for $750,000 and over
Contracts of Sale entered into after 1 July 2017 where the sale price is $750,000 or above are subject to a 12.5% withholding tax unless the vendor provides a tax clearance certificate to the purchaser.  What this means is that unless the purchaser receives the certificate from the vendor, the purchaser must retain the 12.5% tax on the sale price and remit it to the ATO.

To avoid 12.5% being deducted from the sale price, the vendor must obtain a tax clearance certificate from the ATO and provide it to the purchaser.  We can do this for you.

The pre-1 July 2017 rate for properties sold for $2 million and over with the lower rate of 10% withholding tax continues to apply to Contracts of Sale entered into before 1 July 2017, even if they are not due to settle until after 1 July 2017.

 

It will only apply to vacant properties located in the municipalities of Banyule, Bayside, Boroondara, Darebin, Glen Eira, Hobsons Bay, Manningham, Maribyrnong, Melbourne, Monash, Moonee Valley, Moreland, Port Phillip, Stonnington, Whitehorse and Yarra.

 

 



 

 

 


  The tax will apply at the rate of 1% of the property’s capital improved value.  For example, if the taxable property has a capital improved value of $500,000, the applicable tax will be $5,000.  The capital improved value of a property is the value of land and buildings as determined every second year as part of the council valuation process.  The capital improved value of your property is displayed on your council rates notice.

 

 

 

The tax will be self-reporting.  That is, owners of vacant residential property will be required to notify the SRO of any vacant properties that they own.

 

 

 

 

There will be a number of exemptions, including holiday homes owned by those with a principal place of residence in Australia; those who need a city unit for work; properties in deceased estates; and homes subject to legitimate temporary absences, such as overseas holidays and hospitalisation.