Australia has faced major property law and tax announcements this year, set to take place throughout 2024 and beyond.
Explore the dynamic changes in Australia’s real estate landscape as we navigate the evolving implications of property law and tax reforms.
The new Property Law Act 2023 was passed this October in a bid to modernise Queensland’s property laws and allow for better facilitation of e-conveyancing and electronic transactions.
One of the most important changes to the act is the Seller Disclosure Scheme which gives a buyer the right to terminate the contract for sale at any time before settlement.
If the seller fails to provide any of the Disclosure Documents at the relevant time, or provides Disclosure Documents that are inaccurate or incomplete regarding a material matter, the buyer has the right to walk away from the transaction.
These reforms aim to make the process more transparent for buyers and reduce complexity for sellers.
An Annual Property Tax will replace land transfer duty (stamp duty) on commercial and industrial properties in Victoria from 1 July, 2024.
As they are sold, commercial and industrial properties will be transitioned to the new system, with the tax to be payable from 10 years after the transaction.
The exemption threshold for the First Home Buyers Assistance Scheme was raised in July, 2023 to offer stamp duty waivers for newly built homes valued up to $800,000.
The ACT government continued the reduction of the Conveyance Duty Tax Rate and, effective as of July 1, 2023, the lowest owner-occupier conveyance duty rate on purchases up to $260,000 was reduced from 0.6 per cent to 0.49 per cent.
While the property price threshold for owner-occupier (off-the-plan) conveyance duty concession increased from $600,000 to $700,000. There was also the introduction of the Build-to-Rent and the Affordable Housing Project Fund in the ACT with the 2023-24 budget allocating $345 million in additional funding to housing programs and initiatives.
In South Australia, the government increased the Property Value Cap for the first home owner grant to $650,000 and abolished stamp duty for eligible first home buyers for new homes valued up to $650,000 with relief phased out progressively up to $700,000.
It also abolished stamp duty for eligible first home buyers for vacant land – intended for a new home construction – valued up to $400,000 with relief phased out progressively up to $450,000.
The government also introduced a Low Deposit Home Loan Scheme allowing first home buyers to borrow to construct their first home with a 2 per cent deposit.
In WA the government extended the off-the-plan transfer duty concession to 30 June, 2025 and property value thresholds were increased.
Property tax will also be set at 1 per cent of the property’s unimproved land value, with the changes proposed to take effect from July 1, 2024.
Another significant change is the introduction of a 50 per cent land tax concession for new eligible Build To Rent developments.
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