PCS Tax Alert - Australian Vacancy Tax
04 December 2017
The Australian government enacted a new tax on foreign-owned residential properties that are kept vacant by their owners. The new legislative measures are part of the Federal Government’s attempt to be seen to be taking action on current runaway housing prices in Australia particularly in Sydney and Melbourne.
This Tax Alert covers which taxpayers are affected, which properties are covered and in which year, when a property is occupied, how the liability is calculated, compliance considerations and our view on whether or not these measures will have an effect on housing prices (which is not entirely clear).