Photo: The Guardian
WHEN there are millions of High Net Worth across Asia and particularly from China … that Australia’s small percentage increase to fees and charges mean little to these very wealthy buyers
WHY NOT visit or email your local LABOR, Greens, Sustainable Australia, Centre Alliance and all Opposition Party MPs, Senators or Candidates and ask them what their Party will do to stop the 100% sell off of Aussie ‘new homes’ overseas?
BECAUSE it still applies …
It is this MAY 2017 Budget Regulation to the FIRB ruling which will enable developers to build terraces, townhouses, Manor Homes, duplex, triplex and villas for ‘foreign buyers’ through the ‘Low Rise Medium Density Housing Code’ in NSW!
Then Treasurer Scott Morrison when announcing this Budget Regulation made much noise about the cut back to 50 per cent of ‘new homes’ to be sold overseas … but what was not fully reported unlike here in this article by Matthew Cranston:
“We will restore the requirement that prevents developers from selling more than 50 per cent of new developments to foreign investor,” the Treasurer said.
AND … Matthew Cranston included in this report:
‘The new regulation of 50% applies only to developments with at least 50 units.‘
Which meant foreign buyers could not buy-up a whole residential tower development of 50 or more dwellings
this Regulation still allowed for the 100 per cent sell off overseas, for example, of medium-density housing developments of 49 dwellings or less!
-10 Terraces on a 600 M2 lot, row(s) of townhouses, Manor Houses, triplex, duplex, villas …
CAAN Photo: Where there was a large garden and cottage rows of townhouses are being built … Under previous Planning Laws a lot as large as this could be subdivided for 2 homes. This development will rob the neighbours of their amenity!
Budget 2017: Foreign property investors hit hard in budget
Matthew Cranston Economics Correspondent
May 9 2017
BUDGET 2017: FOREIGN PROPERTY INVESTORS HIT HARD IN BUDGET
Foreign buyers will lose tax breaks worth $600 million.
by Matthew Cranston
Foreign buyers of property will be hit with increased taxes and charges of more then $600 million over the next four years in an effort the government says will help reduce housing affordability pressures.
The biggest hit to foreigners, who have been increasing the value and volume of property purchases, will be in the change to their capital gains made on property and their strategy of holding properties without occupying them.
As of Tuesday’s budget, foreign and temporary tax residents will no longer be exempt from a capital gains tax when selling their main residence in Australia.
Existing properties held prior to this date will be grandfathered until June 30, 2019.
Furthermore, the withholding rate on capital gains tax that foreigners must pay when they sell property will increase to 12.5 per cent from 10 per cent beginning from July 1.
Currently the withholding tax is only taken when a foreigner sells a property worth $2 million or more, but under the government’s new regime it will now apply to the sale of properties worth $750,000 or more, widening the pool for revenue collection.
All these changes in capital gains are estimated to reap the government $600 million over four years.
In a copycat move of the Victorian Labor government, Treasurer Scott Morrison also introduced a charge on foreign owners of residential property where their property is not occupied or not genuinely available on the rental market for at least six months per year. The charge will be at least $5000.
“This measure is intended to encourage foreign owners of residential property to make their properties available for rent where they are not used as a residence and so increase the number of dwellings available for Australians to live in.”
The new charge will come into effect as of Tuesday night’s budget and will be levied annually. It will bring in $16.3 million over the forward estimates and be monitorred by the Australian Tax Office.
Property Council of Australia chief executive Ken Morrison said the vacant property chrarge was a waste of money.
“We have not seen any evidence that the ‘vacant property’ issue is real,” Mr Morrison said, “It appears to be a policy seeking to solve an ‘urban myth’.
Mr Morrison said that the tax “will cost more to administer than it will raise.”
“This measure will not improve housing affordability one iota.”
A further restriction by the government on foreign investment in Australia’s housing pool will be to revise the percentage of a new development that can be sold to foreigners.
“We will restore the requirement that prevents developers from selling more than 50 per cent of new developments to foreign investor,” the Treasurer said. The new regulation applies only to developments with at least 50 units. “
The current level is 100 per cent after the Rudd government lifted it from 50 per cent.