An overview of the Australian Government package policy announcements and what's changing for non-traditional real estate sectors.
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.
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:
Further details are provided in our report.