Happy New [Financial] Year
Oh what a year ahead us property owners are going to have. We are about to face a perfect storm of increased charges and taxes levied by local, state and federal government, according to Nick Behrens, Director of Queensland Economic Advocacy Solutions. Let’s hope that our property values increase more than adequately to cope. Mind you, that’s also a “catch 22” as increased property prices inevitably lead to increases in Council rates. Following are seven tax increases that will affect property owners, investors or occupants beginning today.
7 Property Tax or costs increases.
- Queensland Land Tax – a surcharge of 1.5% will be introduced for absentee payers of land tax applying to holdings of $350,000 or greater in addition to other land tax payable. Whilst this won’t effect Queensland residents it may impact on investment overall.
- The ATO will disallow deductions for travel expenses related to inspecting,maintaining or rent collecting for residential rental property.
- Capital Gains Tax – an increase to 12.5% from 10% for foreign tax residents of the CGT withholding rate coupled with a reduction of the withholding threshold – down to $750,000 from $2.0M.
- Councils across Queensland are increasing rates e.g. Brisbane by 2.4%, Ipswich by 2.95%, Logan by 1.7%, Moreton Bay by 3.99%, Redlands by 2.73%.
- Water & Sewerage charges are also increasing here in Brisbane (QUU by 2.3%), Unity Water by 3%
- Electricity Charges are increasing by 3.3% for households and 4.1% for businesses
- Finally the new Major Bank Levy kicks in and, knowing the banks involved will likely, sooner or later be passed on to us before too much longer.
2 Beneficial changes:
- Individuals looking to buy their first home will be able to access specific voluntary contributions made in to superannuation after July 1, 2017. The voluntary contributions will be accessible by individuals from July 1, 2018. Limits apply to the amount that individuals can contribute under this measure to $15,000 per year and $30,000 in total. This is a Federal Government initiative.
- To assist first home buyers entering the housing market, the Queensland First Home Owners’ Grant temporary increase, from $15,000 to $20,000 for contracts on newly constructed homes will be extended to eligible transactions entered into between July 1, 2017 and December 31, 2017. (State Government)
We don’t want to scare or alarm you as this in reality is the time of year when these sorts of changes and increases usually kick in. Nobody gets too bothered about them when they are making money through property as most of our clientele are. Click here to see how we can help you