- 2015
- Transitioning support for auto supply chain companies
- Innovation in Australia
- New FBT entertainment cap introduced
- New reporting obligations for multinational companies
- Unlocking super
- The truth behind business failure
- 2015 Distinguished Family Business of the Year
- Melbourne plan refresh: The 2050 metropolitan planning strategy
- Tax alert: GST & remote housing accommodation
- The Federal Government's Tax discussion paper released today
- New fees hurt developers’ bottom line
- Payroll Tax Rebate – Action before 23 November 2015
- New South Wales State Budget 2015-16
- Western Australian Real estate & construction update
- Victoria Real estate & construction update
- South Australia Real estate & construction update
- Queensland Real estate & construction update
- New South Wales Real estate & construction update
- State revenue offices and the ATO information sharing
- Redundant corporate entities?
- Streamlined process for new business applications
- Imported building materials under scrutiny
- Tightened lending rules threaten industry growth
- Any GST hike must be offset
- New PM appoints Minister for Cities
- Reforming Australia’s Federation and Tax System
- A message from our Global Head of Real Estate & Construction
- Adelaide CBD property outlook – Key considerations
- The deadline is looming for the Exploration Development Incentive
- Valuing Employee Share Schemes (ESS) – Impending Tax Changes
- Queensland State Budget 2015-16
- New restrictions on entertainment salary packaging
- NADA conference day three
- NADA conference day two
- Do you have the keys to NADA 2015? Day 1
- South Australian State Budget 2015-16
- 27 Pay Periods in 2015/16
- Corporate simplification and solvent liquidations
- Fringe Benefits – Hidden FBT and deemed dividend issues
- NSW Payroll Tax Rebate
- SuperStream compliance
- Should I maintain my SMSF?
- Art and collectables as alternative investments
- Tax alert: GST ruling published
- Western Australian State Budget 2015-16
- New funding opportunities for Australian food & beverage companies
- Super fund investment choice – What are the options?
- Nominating beneficiaries for your superannuation benefits
- Superannuation consolidation
- Victorian State Budget 2015/16
- Encouraging innovation in Australia’s Life Sciences and Biotechnology industries
- Fraud in focus: Fraud and corruption in Banking and Financial Services
- Tax alert: Refunds of excess GST
- New Employee Share Scheme Bill Introduced
- SuperStream employer webinars
- Staying vigilant against fraud
- Tax Alert: Are you meeting your employment tax obligations?
- Tax alert: No change to R&D tax offset rates
- Act now to be ready for FATCA
- Tax alert: Changes to Employee Share Scheme Tax Laws
Foreign real estate buyers to pay fees
As part of a consultation paper designed to restore confidence in the foreign investment review system, the Federal Government has flagged fees payable by foreign investors in Australian residential real estate. The measures are designed to ensure foreign buyers are on a level playing field with domestic buyers.
The proposed fees will include a $5,000 application fee for property purchases under $1 million and will increase by $10,000 for each additional $1 million spent.
While many foreign investors are not expected to baulk at fees of this size, of concern is the message being sent to foreign investors in a competitive global property market. Those currently marketing Australian properties to offshore investors now have the challenge of selling these additional charges, along with the threat of significant penalties when investing in Australia.
It is expected the fees will collect $200 million each year in tax, with heavy penalties for non-compliance. At risk are fines of up to 25% of the value of the property and forced sale by foreign or forfeit the property. We’ve already seen the Government’s first scalp in the headlines with the forced sale of Villa del Mare in Point Piper.
Foreign investment in agricultural land
The Federal Government also announced a significant reduction in the notification threshold that applies to the purchase of agricultural land by foreign investors from 1 March 2015.
The previous notification threshold amount of $248 million has been reduced to $15 million, with the changes expected to significantly increase the number of foreign investors requiring Foreign Investment Review Board (FIRB) approval.
A new approach has been taken as the new notification threshold will be cumulative, taking into account the total value of the agricultural land owned by the foreign investor.
A foreign ownership register of agricultural land is to be established and is intended to strengthen its reporting requirements regarding foreign acquisitions and to gain a better understanding of the level of foreign investment in agricultural land in Australia.
The Government has announced it will take public submissions on its proposals until 20 March 2015.
