FIRB buyers impacted by 2017-18 Federal Budget

May, 2017

By Tim Cox, Partner

Foreign investors face new financial and compliance hurdles following new regimes introduced by the 2017-18 Australian Federal Budget. These changes include foreign investors receiving reduced capital gains tax benefits, having annual levies imposed for any unoccupied or under-utilised residential real estate they own and developers being restricted on the number of residences in new developments they can make available for purchase by foreign investors.

Key changes

The key changes are:

Reduced Capital Gains Tax Benefits

Annual Charge for Unoccupied or Under-utilised Residential Real Estate

New Developments – 50% Foreign Investment Approval Cap

Residential Application Fee Increase

Streamlining the Foreign Investment Framework

In addition, a number of amendments designed to streamline the process foreign investors to obtain approval. These amendments, which will come into effect from 1 July 2017, include:

Contact Mills Oakley

If you would like assistance or tailored advice on how these changed impact you, please do not hesitate to contact:

tim-cox-mills-oakley

Tim Cox | Partner
T: +61 7 3228 0442
E: tcox@millsoakley.com.au

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