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Archive for October 18th, 2008

Saturday, October 18th, 2008 | Author:

Right now… its a reccession time in America which affected all over the world.. what i like about the Australian government is they find ways to help  their economy and boost the morale of their citizens and businessmen like the real estate industry unlike other countries which they dont give a crap about it they just want to cash in… hehe.. you know what i mean hehe :)  now, back in oz.. during time of crisis they give additional cash bonuses to their citizens on december.. the rudd government which is “kevin rudd” australias’s prime minister will be giving cash bonus of au$1k per child below 18 years of age… cool huh? Where can you hear or read in a newspaper giving that amount to families? here are some details of the latest news and benefits that they have released to boost the real estate biz this october 2008 and other topics…

Latest Taxes & Duties News
Read the latest Taxes and Duties news.

Boost for First Home Buyers

The Federal Government has announced significant increases to the Grant available to first home buyers. The new measures now bring the total available to those buying a newly constructed home to $26,000 increasing to $29,000 in regional Victoria (subject to certain requirements).

First home buyers purchasing an established home will now be entitled to $14,000 increasing to $17,000 (subject to certain requirements).

First home buyers will be eligible for the new additional assistance for contracts entered into from 14 October 2008 to 30 June 2009.

More than 150,000 first home buyers are estimated to benefit from the time-limited scheme.

Under the First Home Owner Boost:

  • First home buyers who purchase established homes will receive an extra $7,000 to take their total grant to $14,000; and
  • First home buyers who purchase a newly constructed home will receive an extra $14,000 to take their total grant to $21,000.

The Rudd Government will invest around $1.5 billion in the housing market over 2008-09 and 2009-10 through this initiative.

In addition to these amounts, first home buyers may also be eligible for a further bonus (subject to certain requirements). Please refer to the table below for further information.

Contract Date Conditions First Home Owner Grant New First Home Owner Boost First Home Bonus # First Home Owner
Regional Bonus #
From 14 October 2008 to 30 June 2009*This information has been taken from the Prime Minister’s Media Release dated 14 Oct 2008. This information is subject to formal approval. Established homes only $7,000 $7,000 $3,000 $0.00
Newly constructed homes in Metropolitan Victoria only $7,000 $14,000 $5,000 $0.00
Newly constructed homes in Regional Victoria only $7,000 $14,000 $5,000 $3,000
From 6 May 2008 to
13 October 2008
Established homes only $7,000 $0.00 $3,000 $0.00
New homes in Metropolitan Victoria only $7,000 $0.00 $5,000 $0.00
New homes in Regional Victoria only $7,000 $0.00 $5,000 $3,000
From 1 January 2007
to 5 May 2008
Established homes only $7,000 $0.00 $3,000 $0.00
New homes only $7,000 $0.00 $5,000 $0.00
From 1 January 2006 to 31 December 2006 Established and New homes $7,000 $0.00 $3,000 $0.00
From 1 May 2004 to 31 December 2005 Established and New homes $7,000 $0.00 $5,000 $0.00

# Additional Condition: To be eligible to receive the Bonus and Regional Bonus, the value of the property must not exceed $500,000.

Comment: The information provided in the above table is to be used as a guide only.

A Media Release was issued on October 14 2008.

Changes to the off the plan duty concession for contracts entered into on or after 1 October 2008

As a consequence of recent changes to the off the plan provisions in the Duties Act, a simpler method for calculating the concession is available for contracts entered into on or after 1 October 2008. For further information, please refer to ‘Duty concession for off the plan sales‘ and Revenue Ruling DA.048.

The SRO has also published new Duties Form 4A ‘Off the plan sales statutory declaration’, which is to be used for off the plan contracts relating to both land and building packages and refurbished lots, where the contract is entered into on or after 1 October 2008.

Review of the Administration of the Congestion Levy – Implementation of Review Recommendations September 2008

A review of the congestion levy was undertaken in 2007 and a number of recommendations have now been implemented. For further information, please refer to Review of Administration of the Congestion Levy – Implementation of Review Recommendations.

Changes to Unclaimed Money August 2008

The Unclaimed Money Act 2008, which received Royal Assent on 26 August 2008, rewrites the Unclaimed Moneys Act 1962 to modernise the language and provide a clear regime for the administration of unclaimed money. It comes into effect on 1 January 2009. For more information, please refer to the General Information Bulletin GEN 02/08.

Payroll Tax Annual Reconciliation 2007-08

As a consequence of payroll tax harmonisation between Victoria and NSW, employers will see some changes when completing their 2007-08 Annual Reconciliation return (previously known as the Annual Adjustment return). For more details, please refer to the Payroll Tax Bulletin PTX 01/08.

2008 Victorian Budget

The Treasurer John Lenders announced cuts to business and property taxes, extended benefits for first home buyers and a regional first home bonus for newly constructed homes, as part of the 2008 Victorian State Budget.

The Victorian Government has announced significant changes to land tax, duties on land transfers, Payroll Tax and the First Home Bonus.

First Home Bonus

The First Home Bonus will be extended to offer an additional $3000 grant to purchasers of newly constructed homes for those eligible for the First Home Bonus in regional Victoria.

Currently, a Bonus of $3000 for existing homes, or $5000 for new homes, is available across Victoria in addition to the $7000 First Home Owner Grant. The new $3000 regional bonus is additional to the existing $12,000 available for newly constructed homes valued under $500,000.

The regional Bonus is available for eligible contracts entered into on or after 6 May 2008.

DTF Fact Sheet – Assistance for homebuyers

Land Tax

Four significant changes to Land Tax were included in the Budget, effective from the 2009 Land Tax year. The changes are:

  • The tax free threshold is increased to $250,000.
  • Other thresholds will be adjusted by around 10%.
  • The top rate of Land Tax will be reduced from 2.5% to 2.25%.
  • A new exemption will be introduced for land occupied as long term residential accommodation for disabled persons.

DTF Fact Sheets – Land tax cuts | Cutting the cost of doing business

Duties

The Victorian Government’s changes will result in savings on duties on land transfers, and provide further concessions for first home buyers across the State. Budget initiatives include:

  • Duties thresholds will be adjusted by around 10% (for duty on land transfers, Principal Place of Residence (PPR) concession, and Pensioner and Concession cardholder’s concession thresholds).
  • For the first time those eligible for the First Home Bonus will also receive the benefits of the PPR duty concession.
  • A new exemption will be introduced for declarations of trust establishing special disability trusts, and for transfers of land into existing special disability trusts.
  • For business, the existing corporate reconstruction duty exemption has been extended to apply to restructures of stapled entities in specified circumstances.

All duty on land transfer and Bonus related measures will take effect for contracts entered into on or after 6 May 2008. The exemption for special disability trusts applies to a declaration of trust made on or after 6 May 2008, or in the case of a transfer of dutiable property, to a contract entered into on or after 6 May 2008. The corporate reconstruction exemption will apply from 1 July 2008.

DTF Fact Sheets – Cutting the cost of doing business | Assistance for homebuyers

Payroll Tax

From July 1 this year, the Payroll Tax rate which was scheduled to drop from 5.05% to 5.00% will be reduced by a further 0.05% to be 4.95%.

DTF Fact Sheet – Cutting the cost of doing business


Media Release

A Media Release from the Office of the Treasurer was issued on May 6, 2008.

For copies of the Budget Papers, visit the State Budget website at www.budget.vic.gov.au

Congestion levy and land tax changes

The State Taxation and Accident Compensation Acts Amendment Act 2007 which received Royal Assent on 11 December 2007, made a number of changes to the Congestion Levy Act 2005 and the Land Tax Act 2005 among other things.

For more information on these changes, please refer to our General Information Bulletin GEN 04/07 ‘Changes to State Taxes – December 2007’

What’s New at the SRO
Keep up to date with the latest SRO news and events.

2007-08 Payroll Tax electronic Annual Reconciliation (e-AR) is now available

The 2007–08 Annual Reconciliation is now available online and is due to be lodged and paid by Monday 21 July 2008.

Please note the following changes for 2007-08

  • The estimated payment option to gain an extension has been replaced with a standardised due date of 21 July 2008 for all customers.
  • Declaration of FBT has been simplified.
  • There is a new taxable wage component ‘Shares/Options’.
  • There is no wage split, the tax rate is 5.05% for the full year.