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Hi,
New Capital Gains Tax (CGT) Withholding Provisions come into force on 1st July 2016.
For properties valued at or more than $2,000,000 a Buyer must withhold 10% of the purchase price and pay such monies to the Australian Taxation Office (ATO) on or before settlement, unless the Vendor has obtained a Clearance Certificate from the ATO (Taxation Administration Act 1953 (CTH) - Subdivision 14-D).
For more information about the new provisions click here
Where monies are to be withheld in accordance with this legislation, it will usually be done as part of the settlement process and should not affect an agent's responsibilities in respect of a real estate transaction.
Having said this, agents would be advised to make Sellers and Buyers aware of the situation where a property is likely to sell for $2,000,000 or more and both parties to the sale would be wise to seek legal advice from their legal advisors.
Where a Vendor wishes to obtain a Clearance Certificate from the ATO to avoid part of the proceeds of their sale being withheld, they would be wise to apply for the certificate well in advance of settlement, as turnaround on certificates are likely to be slow (at least in the early stages of this legislation). Once a clearance is received it remains in place for twelve (12) months.
In respect of property sales valued at $2,000,000 or more, ADL is preparing a new clause for all its Sales Contracts, which will cover the requirements of the legislation. The updated contracts will be released on 1st July 2016.
1. From 1st July 2016 an agent will be required to provide a notice to prospective tenants in respect of the tenancy databases they use (and why) and a further notice if they find information about a prospective tenant on any of those databases.
The new notices will be required under sections 458A and 458B of the QLD Residential Tenancies and Rooming Accommodation Act 2008 (the Act).
In addition to the requirement for these notices, sections 459A to 459D of the Act provide for rules in respect of:
- The 'quality' of information held on a tenancy database
- How a tenant may obtain a copy of personal information listed on a tenancy database
- How long information can be maintained on a tenancy database
- When and how a tenant can have information updated on or deleted from a tenancy database
Agents should become familiar with their responsibilities under the new legislative requirements in respect of dealing with prospective tenants and the use of tenancy databases.
Click here to view more information about the legislation changes and how it affects you
ADL is preparing two new forms for release on 1st July 2016 that will comply with the required notice provisions in sections 458A and 458B of the Act.
Click on the link below to:
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