New thresholds and burdens for tax-collecting conveyancers and property lawyers

Legislation change is set to give lawyers and conveyancers extended powers as they take on the role of tax collector during the property settlement process. From July 1, 2017 the changes to legislation will limit the capital gains tax (CGT) exemptions available to foreign and temporary residents and increase withholding rates for foreign tax residents. GlobalX CEO Peter Maloney said that the process will involve lawyers and conveyancers acting as tax collectors, ensuring that money from property sales is withheld during the settlement process and paid to the Australian Tax Office (ATO) when required. “Currently, all property transactions worth more […]

If foreign property buyers had to pay a 15% transaction tax, what would happen?

What would happen if there was a 15% tax payable by foreign buyers of residential real estate? The percentage would be applied to the price of their property purchase. We can get an idea of what might happen because this is what the province of Ontario in Canada recently implemented. The Toronto real estate market has been going through a similar experience to that of Sydney and Melbourne. Canada appears to be one or two steps ahead of Australia in taking action on rising property prices. Toronto has had an even wilder ride than Sydney or Melbourne. There is statistical […]

Conveyancing: technological advances simplifying property due diligence

SAI Global’s New Property Enquiry Report Seeking to improve the outcome for both conveyancers as well as the property buyers and sellers, SAI Global’s new Property Enquiry Report leverages new technology to streamline the due diligence process, helping conveyancing professionals enhance their ability to advocate on behalf of customers. The Property Enquiry Report generates a short, easily digestible summary from the vast number of searches conveyancing professionals must obtain on behalf of a customer. Potential risks are highlighted and rated using a simple red light system to enable more productive conversations with customers about potential risks attached to a property. […]

Conveyancing Activity if the Property Bubble Bursts

  If you are starting out in the property market, you would not want the property bubble to burst, you would want it to explode. Unfortunately, for new buyers, neither has taken place. This is despite ample commentary warning people to step back because it’s going to blow at any moment.   From a conveyancer’s point of view, any downward correction in prices has typically brought with it a reduction in sales activity. Therefore, it is with some relief to know that April was not the month that the so-called bubble burst.   Is it possible that the tried and […]