International Investor Tax Update
Bipartisan amendments to the State Taxation Acts Amendment Bill 2015 have been secured enabling the State Government’s new international investor taxes to now pass Parliament.
Members will recall that the Property Council reported holding discussions with the Treasurer and the Opposition seeking changes to their new non-resident duty and absentee owner surcharges via revisions to the Treasurer’s new tax Guidelines. Despite Victoria going it alone with foreign investment taxes, these discussions were successful in exempting corporations unfairly caught up in these new property investment taxes. The efforts of the members in working with the Property Council to overturn the unintended consequences is commended and will save the industry hundreds of millions of dollars that otherwise would land on the cost of new housing.
The amendments put through Parliament this week have resulted in key changes to the legislation, including:
- Formally referencing the Guidelines which outline how exemptions will be determined;
- Transparency measures requiring regular public reporting by the Government regarding the exemptions detailing the number, foreign corporations and duty forgone.
- Delegation of exemption determination powers to the Commissioner which provides an independent exemption decision and removes the decision directly out of the hands of the Treasurer.
The Property Council is relaxed about these amendments and congratulates both sides of politics for working together to improve the Bill which has heard the submissions in recent days from the Property Council and the RDC.
Exemption application procedures for corporations impacted by this Bill will be circulated as soon as the State Government makes them available.
Members who have any queries regarding how these new taxes will operate should contact the Property Council Office on 96 8300 or the SRO via www.sro.vic.gov.au