Changes to federal government legislation have driven a requirement for more information to be provided to the Australian Taxation Office when ownership of a property changes. This information has a crucial role to play in reducing tax errors and increasing tax compliance.
The amendments require all states and territories to report information on transfers of freehold interests or leasehold interests (where applicable) in real property, which will improve capital gains compliance and help keep the National Register of Foreign Ownership of Land up to date.
There are related industry groups who work alongside the Western Australian property industry. The changes involving buyers and sellers in the Western Australian property industry will affect them. These include - real estate agents, property developers, banks and finance brokers, and income tax professionals
Landgate has provided updates to property industry bodies on the property reporting initiatives so the industry can guide and assist their clients. In the coming months, Landgate will continue to talk to various industries via publications and industry information sessions.
From July 1 2017, new Commonwealth Government reporting requirements will be introduced that will affect all buyers and sellers involved in real estate property transfers in Western Australia.
For each transaction of freehold (and some leasehold) interest in real property situated in WA, the information to be collected and reported will include:
Buyers and sellers will be requested to provide this information to the conveyancing professional who is working on their behalf during the settlement process. Self-represented parties will be requested to provide all the information through a form and present it at Landgate.
The state government encourages parties to a land transfer to do their part to ensure an efficient Australian taxation system.
For a comprehensive list of the information required see the ATO Property Reporting Requirements for WA.