Before we launch into something informative for those embarking on a purchase, sale or transfer of a property, we would like to take this opportunity to emphasise to property buyers and sellers, and to real estate agents, in the Noosa area (say, from Cooroy southwards!) that we are maintaining a special conveyancing fee regime. Should you be in this area and utilise our “instant conveyancing quote” button you may find that it will not take this special into consideration, so please free to contact us directly for an up-to-date quote.
In July 2016, we had thrust upon us a new capital gains tax withholding regime. This regime applies to foreign residents who are transferees or buyers of property worth more than $2million. Under the regime, these people are required to remit 10% of the sale price to the ATO, unless the transferor or seller provides a clearance certificate or a residency/interests declaration.
Interestingly, the regime did not provide for an exemption for property transfers that may take place pursuant to the Family Law Act, for example under a Financial Agreement or Orders. This has led to the Acting Deputy Commissioner of Taxation issuing an amendment which states that the amount payable by a transferee of such a property in such a circumstance will be NIL. A copy of the Agreement or Orders must be supplied as proof.
Further of interest however is that a transferee is described in the amendment as “a spouse or former spouse” which of course raises the question as to how a transfer to a relevant company or trust will be dealt with by the ATO. Without a further amendment or explanation we can only assume that a liability of the transferor will exist in those instances.
Should you require further information regarding the above, please feel free to contact us.