Policy measures set to impact Australian real estate | KPMG | AU
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Policy measures set to impact Australian real estate

Policy measures set to impact Australian real estate

An overview of the Australian Government package policy announcements and what's changing for non-traditional real estate sectors.

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Overview of the impact on stapled structures

The Australian Government has released a package of policy announcements that, while not disrupting existing investments in traditional real estate sectors, may impact structures used in other non-traditional sectors.

Accordingly, investors in student accommodation, hotels, data centres, retirement and other sectors where there is a practice of using cross staple leases will need to review the impact of the changes that will essentially tax all profits from these investments at the corporate tax rate from 1 July 2026. Future investments in these sectors will no longer be able to use stapled structures to access the lower 15 percent MIT withholding tax rate from 1 July 2019.

Key insights

In this report, KPMG explains what the upcoming policy announcement changes are, what they mean, and what comes next for traditional and non-traditional sectors.

Changes have been made within the following areas:

  • stapled structures
  • limiting sovereign immunity
  • removing agriculture from MITs
  • limiting the foreign pension fund withholding tax exemption
  • removal of ‘double gearing’ structures
  • transitional rules.

 

Further details are provided in our report.

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