The Property Council and the Urban Development Institute of Australia have secured a major win for home buyers by successfully negotiating exemptions from the Government's new international investor taxes.
The exemptions outlined in the Government's revised Guidelines will ensure that Australian homebuilders with full or partial international ownership will not be forced to pass on the new taxes to future homebuyers.
Victorian Property Council Executive Director Jennifer Cunich said the changes we have secured will save aspiring homeowners thousands of dollars by exempting home builders from the Government's new international investor taxes.
"Importantly, these Guidelines will also now have a higher degree of legal authority as they will be tabled in Parliament and displayed on the State Revenue Office website tomorrow.""Our preference would have been to have the Guidelines referenced in the Bill, however, we are pleased to have secured many other important changes which will avoid a number of unintended consequences."Chief Executive of the Urban Development Institute Danni Addison welcomed the result with the Andrews Labor Government.
"Today's announcement is an important outcome for Victoria's development industry, an industry that underpins the economic stability and growth of the state.""This reworked, common sense approach is both a win for the property development industry and a win for Victorian families seeking their first or next home.
[urbanRelatedPost][/urbanRelatedPost]"The proper use of discretionary powers established today will ensure that companies which positively contribute toward the affordability of Victorian housing will be able to confidently invest in this state," Ms Addison said.
Ms Cunich said prior to these changes, Australian homebuyers in the growth areas were facing an indirect tax bill of between $2,000 and $6,000.
"This is a great win for homebuyers and industry and are a clear sign that the Government knows how to effectively engage with the business community," Ms Cunich said.
The Property Council and the UDIA have been engaged in industry negotiations over the Guidelines with the State Government for the past three weeks.
The revised Guidelines outline how the new taxes will be applied, what discretion the Treasurer has for enacting his responsibilities and what development activity and foreign ownership arrangements will trigger an exemption.