New South Wales

There are very few property transactions that do not have any tax implications. Therefore, property practitioners cannot afford to be ignorant of the possible tax implications on a property transaction.

This subtopic sets out the aspects of the taxation legislation which are relevant to commercial property transactions. Those taxes, a general description of the nature of the tax and the legislation governing those taxes, are set out below:

• • Stamp duty — taxed on dutiable transactions, whether or not there is a written instrument: Duties Act 1997 (NSW).
• • Land tax — charged on the value of all land holdings of a taxpayer: Land Tax Act 1956 (NSW); Land Tax Management Act 1956 (NSW).
• • Capital gains tax — charged on capital gains made on an asset acquired after 20 September 1985: Income Tax Assessment Act 1997 (Cth). There is a duty on purchasers to withhold capital gains tax on certain sales unless the vendor produces a clearance certificate.
• • Goods and services tax — levied on all transactions in which an entity makes a taxable supply: A New Tax System (Goods and Services Tax) Act 1999 (Cth). Since 1 July 2018, there is now an obligation on certain purchasers of new residential premises or potential residential land to withhold an amount in respect of the vendor’s obligation to pay goods and services tax (GST).
• • Landholder Duty — charged on the acquisition of a significant interest in a landholder (an entity which has land holdings with an unencumbered value of $2 million or more: Duties Act 1997 (NSW).

The website of the Office of State Revenue includes a calculator to calculate the different forms of stamp duty. Taxation issues can be both complex and prescriptive and involve both legal and accounting principles. It is therefore important that a practitioner's retainer clearly set out the scope of the taxation advice to be given. The advice may be limited to general advice only. In complex transactions, or where the client has a complex structure, it may be prudent for the practitioner to advise the client to seek specialist advice.

Victoria

There are very few property transactions that do not have any tax implications. Therefore, property practitioners cannot afford to be ignorant of the possible tax implications on a property transaction.

This subtopic sets out the aspects of the taxation legislation which are relevant to commercial property transactions. Those taxes, a general description of the nature of the tax and the legislation governing those taxes, are set out below:

• • Stamp duty — taxed on dutiable transactions, whether or not there is a written instrument: Duties Act 2000 (Vic).
• • Land tax — charged on the value of all land holdings of a taxpayer: Land Tax Act 2005 (Vic). Since 1 January 2018, vacant residential land tax is an additional annual tax set at 1% of the capital improved value of the taxable land.
• • Capital gains tax — charged on capital gains made on an asset acquired after 20 September 1985: Income Tax Assessment Act 1997 (Cth). There is a duty on purchasers to withhold capital gains tax on certain sales unless the vendor produces a clearance certificate.
• • Goods and services tax — levied on all transactions in which an entity makes a taxable supply: A New Tax System (Goods and Services Tax) Act 1999 (Cth). Note that since 1 July 2018, there is an obligation on certain purchasers of new residential premises or potential residential land to withhold an amount in respect of the vendor’s obligation to pay GST.
• • Landholder Duty — charged on the acquisition of a significant interest in a landholder (an entity which has land holdings with an unencumbered value of $2 million or more: Duties Act 2000 (Vic).

The website of the Office of State Revenue includes a calculator to calculate the different forms of stamp duty.

Taxation issues can be both complex and prescriptive and involve both legal and accounting principles. It is therefore important that a practitioner's retainer clearly set out the scope of the taxation advice to be given. The advice may be limited to general advice only. In complex transactions, or where the client has a complex structure, it may be prudent for the practitioner to advise the client to seek specialist advice.

Queensland

• • Stamp duty (also referred to as Transfer Duty)— taxed on dutiable transactions: Duties Act 2001(Qld).
• • Land tax — charged on the value of all land holdings of a taxpayer: Land Tax Act 2010 (Qld).
• • Capital gains tax — charged on capital gains made on an asset acquired after 20 September 1985: Income Tax Assessment Act 1997 (Cth). There is a duty on purchasers to withhold capital gains tax on certain sales unless the vendor produces a clearance certificate.
• • Goods and services tax — levied on all transactions in which an entity makes a taxable supply: A New Tax System (Goods and Services Tax) Act 1999 (Cth). Since 1 July 2018, there is an obligation on certain purchasers of new residential premises or potential residential land to withhold an amount in respect of the vendor’s obligation to pay GST.
• • Landholder duty — charged on the acquisition of a significant interest in a landholder (an entity which has land holdings with an unencumbered value of $2 million or more): Duties Act 2001 (Qld).

The website of the Office of State Revenue in Queensland includes a calculator to calculate the different forms of stamp/transfer duty. Taxation issues can be both complex and prescriptive and involve both legal and accounting principles. It is therefore important that a practitioner's retainer clearly set out the scope of the taxation advice to be given. The advice may be limited to general advice only. In complex transactions, or where the client has a complex structure, it may be prudent for the practitioner to advise the client to seek specialist advice.

Western Australia

There are very few property transactions that do not have any tax implications. Therefore, property practitioners cannot afford to be ignorant of the possible tax implications on a property transaction.

This sub topic sets out the aspects of the taxation legislation which are relevant to commercial property transactions. Those taxes, a general description of the nature of the tax and the legislation governing those taxes, are set out below:

• • Western Australia — Duty — taxed on dutiable transactions, whether or not there is a written instrument: Duties Act 2008 (WA).
• • Land tax — charged on the value of all land holdings of a taxpayer: Land Tax Act 2002 (WA), Land Tax Assessment Act 2002 (WA) and the Taxation Administration Act 2003 (WA).
• • Capital gains tax — charged on capital gains made on an asset acquired after 20 September 1985: Income Tax Assessment Act 1997 (Cth). There is a duty on purchasers to withhold capital gains tax on certain sales unless the vendor produces a clearance certificate.
• • Goods and services tax — levied on all transactions in which an entity makes a taxable supply: A New Tax System (Goods and Services Tax) Act 1999 (Cth). Since 1 July 2018, there is an obligation on certain purchasers of new residential premises or potential residential land to withhold an amount in respect of the vendor’s obligation to pay GST.
• • Landholder duty — charged on the acquisition of a significant interest in a landholder (an entity which has land holdings with an unencumbered value of $2 million or more): Duties Act 2008 (WA).

The website of the Office of State Revenue includes a calculator to calculate the different forms of duty.

Taxation issues can be both complex and prescriptive and involve both legal and accounting principles. It is therefore important that a practitioner's retainer clearly set out the scope of the taxation advice to be given. The advice may be limited to general advice only. In complex transactions, or where the client has a complex structure, it may be prudent for the practitioner to advise the client to seek specialist advice.

South Australia

There are very few property transactions that do not have any tax implications. Therefore, property practitioners cannot afford to be ignorant of the possible tax implications on a property transaction.

This topic sets out the aspects of the taxation legislation which are relevant to commercial property transactions. Those taxes, a general description of the nature of the tax and the legislation governing those taxes, are set out below:

The website of the Revenue SA includes a calculator to calculate the different forms of stamp duty.

Taxation issues can be both complex and prescriptive and involve both legal and accounting principles. It is therefore important that a practitioner’s retainer clearly sets out the scope of the taxation advice to be given. The advice may be limited to general advice only. In complex transactions, or where the client has a complex structure, it may be prudent for the practitioner to advise the client to seek specialist advice.

Tasmania

There are very few property transactions that do not have any tax implications. Therefore, property practitioners cannot afford to be ignorant of the possible tax implications on a property transaction.

This topic sets out the aspects of the taxation legislation which are relevant to commercial property transactions. Those taxes, a general description of the nature of the tax and the legislation governing those taxes, are set out below:

The website of the State Revenue Office of Tasmania has a comprehensive set of rulings, guidelines and fact sheets, and includes a calculator to calculate the different forms of stamp duty.

Taxation issues can be both complex and prescriptive and involve both legal and accounting principles. It is therefore important that a practitioner's retainer clearly sets out the scope of the taxation advice to be given. The advice may be limited to general advice only. In complex transactions, or where the client has a complex structure, it may be prudent for the practitioner to advise the client to seek specialist advice.

Northern Territory

There are very few property transactions that do not have any tax implications. Therefore, property practitioners cannot afford to be ignorant of the possible tax implications on a property transaction. This subtopic sets out the aspects of the taxation legislation, which are relevant to commercial property transactions. Those taxes, a general description of the nature of the tax and the legislation governing those taxes, are set out below:

The website of the Territory Revenue Office includes a calculator to calculate the different forms of stamp duty.

Taxation issues can be both complex and prescriptive and involve both legal and accounting principles. It is therefore important that a practitioner’s retainer clearly sets out the scope of the taxation advice to be given. The advice may be limited to general advice only. In complex transactions, or where the client has a complex structure, it may be prudent for the practitioner to advise the client to seek specialist advice.

Australian Capital Territory

There are very few property transactions that do not have any tax implications. Therefore, property practitioners cannot afford to be ignorant of the possible tax implications on a property transaction.

This subtopic sets out the aspects of the taxation legislation which are relevant to commercial property transactions. Those taxes, a general description of the nature of the tax and the legislation governing those taxes, are set out below:

• • Stamp duty — taxed on dutiable transactions, whether or not there is a written instrument: Duties Act 1999 (ACT).
• • Land tax — charged on residential properties that are rented or owned by a trust or corporation: Land Tax Act 2004 (ACT).
• • Capital gains tax — charged on capital gains made on an asset acquired after 20 September 1985: Income Tax Assessment Act 1997 (Cth). There is a duty on purchasers to withhold capital gains tax on certain sales unless the vendor produces a clearance certificate.
• • Goods and services tax — levied on all transactions in which an entity makes a taxable supply: A New Tax System (Goods and Services Tax) Act 1999 (Cth). Since 1 July 2018, there is an obligation on certain purchasers of new residential premises or potential residential land to withhold an amount in respect of the vendor’s obligation to pay GST.
• • Landholder duty — charged on the acquisition of a significant interest in a landholder (landholder is simply defined as an entity which is a private company or a private unit trust scheme that has an interest in land in the ACT itself or through linked entities): Duties Act 1999 (ACT) and Taxation Administration Act 1999 (Cth).

The website of the ACT Revenue Office includes a calculator to calculate the different forms of stamp duty.

Taxation issues can be both complex and prescriptive and involve both legal and accounting principles. It is therefore important that a practitioner's retainer clearly set out the scope of the taxation advice to be given. The advice may be limited to general advice only. In complex transactions, or where the client has a complex structure, it may be prudent for the practitioner to advise the client to seek specialist advice.