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Australian real estate taxes in 2017: recap of significant developments

Australian real estate taxes in 2017

As we approach the end of 2017, it’s time to reflect on the significant developments in the Australian tax regime with potentially far reaching consequences for investors within the real estate sector.

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KPMG has prepared a publication that set outs some of the more significant developments during 2017, together with our views on what investors can expect in 2018 and beyond.

Headlining these significant developments are the Australian Taxation Office (ATO) Taxpayer Alert into stapled structures (TA 2017/1) and Treasury’s consultation into the use of stapled structures the outcome of which is expected to have a significant impact on the real estate sector.

Other significant developments that should be on the radar of property sector participants include:

  • The debt funding of investments including as a consequence of the Chevron case and the proposed anti-hybrid mismatch measures.
  • The ATO’s increased scrutiny on MIT structures, including as set out in its ‘Privatisation and Infrastructure – Australian Federal Tax Framework (January 2017 Draft)’. 
  • Recent draft legislation prohibiting MIT investment in residential investments including ‘multi-family assets’, except where the investments are affordable housing. 
  • The release of Exposure Draft legislation proposed introduction of the Corporate Collective Investment Vehicle regime and Asian Region Funds Passport. It is expected that exposure draft legislation in relation to the proposed regime will be released shortly. 
  • Recent GST developments whereby purchasers of newly constructed residential properties or new subdivisions remit the GST directly to the ATO as part of settlement and continuing expansion of the foreign purchaser surcharges.

KPMG have been involved in the consultation process of a number of topics set out above and in the publication. Please contact your KPMG adviser if you would like to discuss these topics including any issues that KPMG should raise in ongoing consultations on the various measures.

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