The Federal Government’s crackdown on the illegal ownership of Australian real estate has continued... More speculation about the future of negative gearing...
Government orders another raft of forced sales
The Federal Government’s crackdown on the illegal ownership of Australian real estate has continued, with it announcing the forced sale of eight residential properties.
According to the government, the eight properties, valued between $200,000 and $5 million, bring the total number of forced sales since the Coalition formed government to 27.
The eight properties in question were owned by investors from five different countries.
“The individuals involved come from a range of countries – Canada, China, India, Malaysia and the United States of America,” Federal Treasurer Scott Morrison said.
"The foreign investors either purchased established residential property without Foreign Investment Review Board approval, or had approval but their circumstances changed meaning they were breaking the rules,” Morrison said.
Morrison said the discovery of the illegal ownership of the eight properties was thanks to new powers granted to the Australian Taxation Office (ATO).
"The Government's transfer of responsibility to the ATO for compliance has enabled more active investigations and actions targeting illegitimate purchases,” he said.
"Since this transfer in May, over 1,500 matters have been referred for investigation. Through information provided by the public, together with the ATO's own enquiries, over 800 cases remain under active investigation.”
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More speculation about the future of negative gearing
Government orders another raft of forced sales Investor, owner occupier lending increases over November Calls for property professionals to face tougher education and training standards
The Federal Government has been warned they could be the ones to lose out if major changes are made to negative gearing.
According to a recent report in The Australian, Treasurer Scott Morrison is considering whether to include a limit on the amount property investors can claim as a tax deduction through negative gearing each year.
The Tresuary department is currently compiling a white paper on taxation reform, with The Australian claiming one option that may be put forward is a combination of income tax cuts, ending tax concessions that come with superannuation concessions and limiting negative gearing.
But Rich Harvey, managing director of buyer’s agency Property Buyer, said changes to negative gearing could have a huge impact on the property investment industry in Australia.
“Negative gearing seems to be the hot potato that always gets kicked around when it comes to talk about taxation changes. It seems to be an easy target for people to criticise or use so it looks like they’re doing something,” Harvey said.
“But people need to remember that negative gearing is one of the best ways to ensure the creation of affordable housing. Real estate in Australia is quite expensive, so there does need to be some sort of way to incentivise people to be involved and ensure there is a supply line of housing,” he said.
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The Federal Government’s crackdown on the illegal ownership of Australian real estate has continued, with it announcing the forced sale of eight residential properties.
According to the government, the eight properties, valued between $200,000 and $5 million, bring the total number of forced sales since the Coalition formed government to 27.
The eight properties in question were owned by investors from five different countries.
“The individuals involved come from a range of countries – Canada, China, India, Malaysia and the United States of America,” Federal Treasurer Scott Morrison said.
"The foreign investors either purchased established residential property without Foreign Investment Review Board approval, or had approval but their circumstances changed meaning they were breaking the rules,” Morrison said.
Morrison said the discovery of the illegal ownership of the eight properties was thanks to new powers granted to the Australian Taxation Office (ATO).
"The Government's transfer of responsibility to the ATO for compliance has enabled more active investigations and actions targeting illegitimate purchases,” he said.
"Since this transfer in May, over 1,500 matters have been referred for investigation. Through information provided by the public, together with the ATO's own enquiries, over 800 cases remain under active investigation.”
In depth: The benefits an accounting background brings to broking
More speculation about the future of negative gearing
Government orders another raft of forced sales Investor, owner occupier lending increases over November Calls for property professionals to face tougher education and training standards
The Federal Government has been warned they could be the ones to lose out if major changes are made to negative gearing.
According to a recent report in The Australian, Treasurer Scott Morrison is considering whether to include a limit on the amount property investors can claim as a tax deduction through negative gearing each year.
The Tresuary department is currently compiling a white paper on taxation reform, with The Australian claiming one option that may be put forward is a combination of income tax cuts, ending tax concessions that come with superannuation concessions and limiting negative gearing.
But Rich Harvey, managing director of buyer’s agency Property Buyer, said changes to negative gearing could have a huge impact on the property investment industry in Australia.
“Negative gearing seems to be the hot potato that always gets kicked around when it comes to talk about taxation changes. It seems to be an easy target for people to criticise or use so it looks like they’re doing something,” Harvey said.
“But people need to remember that negative gearing is one of the best ways to ensure the creation of affordable housing. Real estate in Australia is quite expensive, so there does need to be some sort of way to incentivise people to be involved and ensure there is a supply line of housing,” he said.
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