Tax jump jolts investors
Many had raised serious concerns about the transparency of the Australian investment landscape and were considering alternative investment destinations.
A leading Australian property group has strongly criticised federal government tax changes, arguing they have stopped international investors from putting their money into Australian property.
The government in the budget doubled the withholding tax rate for international managed investment trusts (MIT), from 7.5 per cent to 15 per cent. The measure has since been approved in the Senate, with a concession for new energy efficient buildings.
Peter Frith, managing director of property and development adviser, Napier & Blakeley, said the action, with no consultation or warning, was a huge mistake and was apparently based on misguided thinking. Continue reading
This year’s event was co-sponsored by International Property Group, Norton Rose and the Trust Company.
Topics that were covered included an overview of the Australian real estate market, the investment decision making process, technical due diligence, MIT regime changes, Foreign Investment Review Board requirements, acquisition case studies, structures deployed to acquire assets in Australia, and capital allowances, after tax analysis and capital gains tax from a depreciation perspective. Continue reading →