Recently, the Australian government made some changes to their policy on foreign investment. The most recent version was released in June 2015. These changes will thereby make it harder for temporary residents to invest in Australia.
From the 1st of December, 2015, foreigners will need to pay a $5000 application fee for purchasing a dwelling under $1 million. The application fee will increase depending on the value of the property.
Here is some information on the changes to be made in 2015:
Established Dwellings (second-hand):
Temporary residents will need to apply if they wish to buy a second hand established property. Only one established property is allowed to be purchased. The buyers must also live in the property whilst they are in Australia and it must be their main residential dwelling. If they are intending to leave Australia, they must sell the property within three months and before they leave the country.
New Dwelling:
Temporary residents must apply if they wish to buy a new dwelling in Australia.
Vacant Land:
Temporary residents need to apply if they wish to buy new dwellings in Australia. These applications are normally conditional.
In terms of tax purposes, capital gains tax (CGT) will be applied for the foreign purchasers. When you dispose of your Australian property, a capital gains tax will need to be paid on any profit.
Foreign or temporary residents are able to apply for the CGT discount depending on whether the CGT asset was held before or after 8 May 2012 and the residency status of the individual who has the capital gain.
For more information on this you can find us at www.gpla.com.au. You can also contact us at info@gpla.com.au or call us 07 5444 1022.