<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

<html><body>
More emergency services workers negatively gear an investment property than lawyers, the latest Tax Office figures show.
But the data shows these police, firefighters and ambulance officers get half the benefit with an average of $745 compared with $1,500 for lawyers given they earn less.
Analysis of the ATO figures by the Grattan Institute finds the biggest winners from negative gearing are surgeons, who claim an average annual tax benefit of $3,586.
The ATO's annual statistics, released on Wednesday, also showed that the number of landlords stopped growing in 2015, as did the net rental losses claimed.
As mortgage interest rates have fallen, the average net loss on property investment has stabilised at between $8,000 and $10,000 a year. 
Of the nation's 2.05 million landlords, 1.3 million were negatively geared, including 58,000 teachers and one in five police officers, Mr Morrison told an urban development conference earlier this week.
"Two thirds of those taxpayers who negatively gear their investments have a taxable income of $80,000 or less," he said.
Grattan Institute chief executive John Daley pointed out said a higher proportion of doctors and lawyers negatively geared than teachers and nurses.
Not that full-time nurses should be cast as low-income earners, he added.
"If you have two people in a household who are both full-time nurses, actually you're in the top 10 percent of income-earners," he said.
"Those professions are quite well paid," he told Fairfax.
Fewer than 5 per cent of sales assistants, cleaners and hairdressers are negatively geared landlords.
Twenty per cent of lawyers are negatively geared, as are 21 percent of emergency services workers.
</body></html>

j.ballantyne1990-6AQqhLzZaK

More cops are landlords than lawyers

<html><body>
There are now a record 2.05 million taxpayer individuals with an ownership interest in a rental property in Australia.
There has been a jump of 348,000 extra investors over six years, increasing at around 58,000 each tax year.
The latest release of ATO data for 2014-15 tax year show the number of individuals with the one investment property stands at a record 1.468 million.
Less than one percent of investors, or 19,198 own six or more property, despite the recent proliferation of articles about their feat everywhere but on Property Observer. 
<table class="tbl-lrg"><tbody>
<tr>
<th class="alignCentre">
Property interests
</th>
<th class="alignRight">
2012–13      
</th>
<th class="alignRight">
2013–14         
</th>
<th class="alignRight">
2014–15
</th>
</tr>
<tr>
<td>
1
</td>
<td>
1,434,211
</td>
<td>
1,445,011
</td>
<td>
1,468,949
</td>
</tr>
<tr>
<td>
2
</td>
<td>
363,705
</td>
<td>
371,038
</td>
<td>
383,505
</td>
</tr>
<tr>
<td>
3
</td>
<td>
110,379
</td>
<td>
113,897
</td>
<td>
118,412
</td>
</tr>
<tr>
<td>
4
</td>
<td>
40,283
</td>
<td>
41,360
</td>
<td>
43,239
</td>
</tr>
<tr>
<td>
5
</td>
<td>
16,600
</td>
<td>
16,982
</td>
<td>
18,231
</td>
</tr>
<tr>
<td>
6 or more
</td>
<td>
17,671
</td>
<td>
18,231
</td>
<td>
19,198
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
1,982,849
</td>
<td>
2,006,519
</td>
<td>
2,051,534
</td>
</tr>
</tbody></table>
Source ATO 
An interest in a property means the property is solely owned, jointly owned or part-year owned.
Looking further back the taxation statistics for the 2009/10 financial year showed that there were 1.7 million individuals who owned a rental property.
 <img class="aligncenter size-full wp-image-2079" src="https://blog.corelogic.com.au/wp-content/uploads/2013/05/Individuals-interest-in-rental-property.jpg" alt="Individual's interest in rental property" width="500" height="283">
</body></html>

jchancellor-FAypfDUnLy

The number of Australians with rental property investments rises to 2.05 million

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The decision to proceed with the Domain separation from Fairfax Media will be subject to a number of conditions including satisfactory outcome of discussions with the Australian Taxation Office.
Macquarie Capital has been confirmed as appointed to advise on the proposed transaction.
Fairfax Media Limited today announced a strategic review of the Domain Group in preparation for Domain’s potential separation into a new Fairfax controlled Australian Securities Exchange-listed entity.
The separation would result in Fairfax continuing to own a controlling majority of Domain (between 60% and 70%), while issuing shares in Domain to Fairfax shareholders at the time the separation is implemented.
Fairfax Media has reported operating earnings of $145 million for the six months ended December 31 – down 9.9% on the final six months of 2015 – with Domain responsible for a majority of the publishing company’s earnings.
The potential separation would be expected to complete this calendar year.
Fairfax Media Chairman Nick Falloon noted that a separation would result in:
<ul>
<li>A separately ASX-listed entity establishing direct valuation for Domain;</li>
<li>Boards and management teams that will be better able to develop distinct strategies, manage capital structures and conduct investment decisions for their respective businesses; and</li>
<li>The opportunity for Domain to attract new shareholders with different investment criteria.</li>
<li>The current intention is that no new capital will be raised.</li>
</ul>
Post separation, Domain will incur a number of costs and adjustments not currently reflected in its segment financials.
Based on preliminary estimates, these are expected to be approximately $8 million to $10 million per annum, consisting of:
Incremental $4 million Board, listing and other costs associated with Domain becoming a standalone entity;
$4 million to $6 million reflecting the transfer of corporate costs currently borne by Fairfax but attributable to Domain, and commercial agreements with Fairfax for certain services.
Antony Catalano, Domain Group chief executive officer will continue to lead the management team.
The complicating tax matter is reportedly "taking up a lot of time inside Macquarie Capital and other advisers," the Fairfax Media Street Talk column has revealed.
"Usually, companies have to spin off or distribute at least 80 per cent of a portfolio company to its shareholders in order to qualify for capital gains tax rollover relief.
"Anything less than 80 per cent can trigger a capital gain (or maybe loss in Fairfax's case) for shareholders at the time of the spin-off, because the ownership is deemed to have substantially changed. It means a potential tax bill, along with a few shares in the new Domain."
Street Talk noted Foster's Group, Tabcorp, Brambles and Orica Ltd have pursued full-scale demergers of business units in recent years, rather than retaining stakes in their respective spin-offs.
Fairfax could apply for an individual ruling from the Australian Tax Office to skirt the laws, although dealmakers said they were rare.
</body></html>

Domain's future depends on helpful ATO ruling

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When Malcolm Turnbull addressed the National Press Club this week I was really hoping that he was going to announce some major policy critiquing for all matters pertaining to Australia’s ongoing housing affordability woes. 
Sadly, very little was offered where he clearly laid the blame at the states and territories which simply identified that very little would be happening to this space.
We can then expect political huffing and puffing until November 2, 2019 which is when Australia must contest the next election. A very strong possibility that we will see a changing of the guard where negative gearing laws will be changed which will then probably coincide with a major property downturn. On that basis, it is clear to predict the game plan for the next two and a half years. Property investors will go -hard simply because they want to get in before the negative gearing rules are changed (should there be a change in government.)
There is no doubt that property prices will continue to rise in 2017 to the extent that we may well see the cumulative house prices reach 100 per cent gains in five years in some areas. The latest statistics from CoreLogic revealed this week, identified the January price rise results showed Melbourne up an additional 11.8 per cent and continues to run amok at 16 per cent. Since June 2012, the cumulative increase in house prices has been 70.5 per cent, CoreLogic reported.
Two things I was expecting announcements on this week were immigration and reducing the off – the – plan ratios to overseas buyers. CBA senior economist Michael Workman said, ‘’housing affordability is set to worsen without federal action. 
The Federal Government controls some of the significant demand factors for housing markets, namely population growth via migration and the spectrum of tax and foreign investment policies that significantly inflate demand for existing and new housing. Housing affordability can be improved, via stabilising growth in house prices and rents, by gradual reforms to both supply and demand issues.”
In the present property environment, there is no need for off – the – plan sales to foreign buyers to remain at 100 per cent and this ratio is controlled by the Turnbull government.
<a href="https://www.propertyobserver.com.au/images/2017/06/VRN-2.png" target="_blank">Click to enlarge </a>
<img src="https://www.urban.com.au/images/2017/06/VRN-2.png" alt="">
Despite the construction of thousands of new apartments, we are not seeing an easing of rents as was the expected case. Data analysis from the NSW Rental Bond Board identified that NSW has more tenants than ever before. No surprises to learn that the most expensive five suburbs are Manly, Waverly, Woollahra, Willoughby and Mosman.
We can therefore expect to see these areas hot – spotting with investors as they know these areas provide the best rental returns as well as capital appreciation. Investors will keep driving these markets simply because the federal government has tinkered with superannuation, and property markets are out-performing the share market.
Of course, we all know that this will change over time although the momentum is much stronger with our respective governments doing absolutely nothing aside from weekly lip service.
 
<a href="https://www.propertyobserver.com.au/images/2017/06/VRN-Statistics.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/VRN-Statistics.png" alt="">
 With much being written about money laundering within the Australian property markets the appointed watchdog, the Australian Transaction Reports and Analysis Centre (AUSTRAC), is investigating more than $3 billion in suspicious transfers from Chinese property investors last year.
This was further backed – up late last year when the major Australian lenders ceased lending to foreign buyers amid concerns. I was then surprised to read this week that foreign investors are again on the surge where this time they are paying cash to settle the full amount of the purchase.
Now many will be asking the obvious questions as to where all these monies are originating from based on recent announcements that the Chinese government had shut down money transfers from China?
Well, allow me to lay your concerns to rest – the smartest thing that Joe Hockey did when he was treasurer was to hand all data collection on every property transfer in Australia over to the Australian Taxation Office (ATO). You may have forgotten that some months later after reviewing the respective data an excited ATO announced that they were expanding their forensic property investigations back to 1985.
Just this week, I received a telephone call from one of the ATO investigators requesting purchaser contact information for a property we sold late last year. Nothing was said, I simply adhered to their request and provided the relevant information.
What this clearly tells us, is that every property transaction is scrutineered by the ATO and you can no longer beat the system.
With so many discussions on housing affordability this is one announcement that should please all those closely following the real estate movements. As each property settles all the data is then sent to the ATO for recording and investigation.
It has become very clear that everybody buying Australian real estate should know that each transaction is noted and investigated. And yes, they have the resources.
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
 
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Why housing affordability is a political no – go zone: Robert Simeon

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The ATO has moved to sell a 331 hectare bushland vacant land holding at Lyons in the Logan district.
It is a holding owned by Sir Yii Ann Hii who is in a $64 million battle with the tax office.
It was bought with Kiew Chion Toing. <a href="https://www.realestate.com.au/property-residential+land-qld-lyons-201695954" target="_blank">The rural zoned holding</a> is scheduled for February 1 auction unless the ATO's enforcement warrant is satisfied.  
The ATO auction advisory nots the owners are Yii Ann Hii and Kiew Chiong Tiong. It was purchased in 1996.
Sir Yii got around Brisbane with 1VIP numberplates on a 2005 Rolls Royce Phantom.
His palatial abode, Bromley, affectionately known as the landmark Hamilton Hill home that businessman Christopher Skase built, was listed for sale last year.
The hotel-like residence on Dickson Terrace was constructed by Skase and his wife Pixie in 1988 who quit Australia for Majorca in 1991.
Set around the medieval circular staircase as 50ft internal Bell tower, it last sold at $6.25 million in 2001.
Sir Yii took proceedings in the Kuala Lumpur High Court seeking a court declaration that he was domiciled in Malaysia from 2001 to 2009 and had been a local taxpayer. The Australian Tax Office had ruled in 2013 that he had abandoned his domicile with his tax resident status shifted from Malaysia to Australia. 
Hii’s lawyer has advised his client did not stay for more than six months in Brisbane, visiting his six children and looking into investments during that period.
 
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Bromley's Sir Yii Ann Hii has Queensland bush block set for ATO auction

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GUEST OBSERVER
The Australian Taxation Office (‘ATO’) released Taxation Determination TD 2016/16 — Income tax: will the ordinary or statutory income of a self-managed superannuation fund be non-arm’s length income under subsection 295-550(1) of the Income Tax Assessment Act 1997 (ITAA 1997) when the parties to a scheme have entered into a limited recourse borrowing arrangement on terms which are not at arm’s length.
TD 2016/16 confirms the ATO’s view that where an SMSF trustee enters into a limited recourse borrowing arrangement (‘LRBA’) on non-arm’s length terms, it is necessary to consider whether the self managed superannuation fund (‘SMSF’) has derived more ordinary or statutory income under the scheme than it might have been expected to derive had the parties been dealing with each other at arm’s length in relation to the scheme.
Non-arm’s length income (NALI) will only arise in those cases where the answer to this question is affirmative.
In answering this question, it is necessary to identify both the steps and the parties in relation to the scheme.
This also requires an analysis of what the arm’s length borrowing terms would have been (‘hypothetical borrowing arrangement’).
It is then necessary to analyse whether it is reasonable to conclude that the SMSF trustee could have and would have entered into the hypothetical borrowing arrangement.
The ATO view is that where it is reasonable to conclude that the SMSF trustee could not or would not have entered into the hypothetical borrowing arrangement, the SMSF will have derived more ordinary or statutory income under the scheme, and this income will be treated as NALI.
Accordingly, where s 295-550(1) applies, the total amount received by an SMSF trustee from the arrangement, after any applicable deductions to the extent they are attributable to that income, is taxed at the highest marginal tax rate plus the temporary budget repair levy (currently 47%), instead of the concessional tax rate that typically applies to SMSFs.
This rate applies even if the SMSF is in pension phase (subject to the proposed $1.6 million balance cap).
TD 2016/16 states at [22] that:
where the SMSF can objectively establish with evidence that it could have and would have entered into the hypothetical borrowing arrangement, a comparison can then be made of the SMSF’s ordinary or statutory income from the scheme (where the parties have not been dealing with each other at arm’s length and have entered into an LRBA on terms which are not at arm’s length) and the income under the hypothetical borrowing arrangement.
The example provided in TD 2016/16 represents an extreme loan arrangement that provides limited practical guidance for the vast majority of related party LRBAs that may be almost but not quite in line with the safe harbour provisions set out in <a href="https://www.dbalawyers.com.au/announcements/ato-releases-safe-harbours-non-bank-smsf-limited-recourse-borrowing-arrangements/">PCG 2016/5</a>. The example in TD 2016/16 includes the following facts:
<ul>
<li>the loan to value ratio (‘LVR’) is 100%;</li>
<li>the interest rate is nil;</li>
<li>the loan term is 25 years, with no repayments required until the cessation of the loan term; and</li>
<li>a mortgage is provided in respect of the property.</li>
</ul>
These facts are clearly not consistent with an arm’s length loan arrangement. The facts from this example are then compared with a hypothetical borrowing arrangement example (which reflects the ATO’s safe harbour guidelines for real estate in PCG 2016/5, ie, 70% LVR, 15-year term, interest at 5.75% p.a. for the 2016 financial year, monthly repayments and security over the property).
Therefore, when determining what is an arm’s length hypothetical borrowing arrangement, the ATO is likely to refer to the safe harbour terms set out in PCG 2016/5 as a starting point (as per the example in TD 2016/16).
Alternatively, an SMSF trustee can obtain and maintain written evidence that demonstrates that the LRBA terms are consistent with an arm’s length dealing in the same factual circumstances.
In TD 2016/16, the ATO states that the rent of $1,000 per week derived from the property is not sufficient to make monthly principal and interest repayments at the rate determined under PCG 2016/5 of $5,800 per month.
The ATO then goes on to conclude that the SMSF trustee could not and would not have entered into the hypothetical borrowing arrangement for a number of reasons, including because once the weekly rental and any future capital gains are taken into account, the property would not be earnings accretive. (‘Accretive’ is commonly defined as growth or increase by gradual addition over time.)
The ATO’s methodology, however, for determining that the property would not generate sufficient future earnings or capital gains is not outlined in TD 2016/16.
The requirement that a property be earnings accretive from the outset of an LRBA requires further consideration and analysis.
The determination of the future capital growth of a particular property would, for instance, involve an analysis of property prices in the area over the proposed ownership period and forward projections of capital appreciation and net income flows.
An SMSF trustee must formulate and implement an investment strategy under s 52B of the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SISA’) that considers the:
<ul>
<li>risk and likely return from the SMSF’s investments having regard to its objectives;</li>
<li>diversification of the SMSF’s investments and the risks of inadequate diversification;</li>
<li>liquidity of the SMSF’s investments and cash flow requirements; and</li>
<li>ability of the SMSF trustee to discharge any existing and prospective liabilities.</li>
</ul>
Furthermore, the earnings and growth from the asset acquired using an LRBA may not necessarily be the main funding source to repay borrowings.
Contributions, rollovers and the admission of further members can also provide the necessary funding.
On the basis that an SMSF trustee has given due consideration to the investment strategy factors outlined above, and has a plan to repay the borrowing on arm’s length terms (as well as meeting any other existing and prospective liabilities), the SMSF trustee is investing in a manner that is consistent with the SISA requirements.
Furthermore, if the LRBA was on arm’s length terms and this could be clearly substantiated, the fact that a property was negatively geared would not, by itself, be sufficient to give rise to NALI.
There is no basis under superannuation or tax law for the position that a borrowing must be repaid from income or gains derived from the asset acquired with that borrowing for the parties to be dealing on arm’s length terms; albeit this may in fact occur in many conservatively leveraged LRBAs.
TD 2016/16 also states that the ATO will consider whether an LRBA is ‘an optimal use’ of the SMSF’s assets. Again, this statement does not reflect the obligations placed on SMSF trustees under superannuation or tax law.
An SMSF trustee is certainly required to invest in a prudent manner and in the best financial interests of members.
Determining, however, what is an ‘optimal use’ of the SMSF’s assets is a subjective exercise that is difficult to quantify or enforce, and that goes beyond the duty to exercise the same degree of care, skill and diligence as an ordinary prudent person would exercise in dealing with the property of another for whom the person felt morally bound to provide for under s 52B of the SISA.
While the legislation provides certain prohibitions or limitations on particular forms of investments, eg, the 5% limit on in-house assets in pt 8 of the SISA, the legislation does not seek to influence a trustee’s choice of investment.
If the ATO views SMSF trustee investment decisions through a prism that requires optimal positively geared investments that generate an accretive return from the date the particular asset is acquired, SMSF trustees will be held to a standard above that required by superannuation and trust law and will find it increasingly difficult to identify asset classes in which to invest, given the risk of a negative return inherent in all but the most conservative of investments.
Fortunately, the ATO’s view expressed in TD 2016/16 regarding optimal positively geared investments, appears to be limited to related party LRBAs at this time.
Parties to an LRBA who are dealing on arm’s length terms can substantiate their position by retaining sufficient evidence to demonstrate that each aspect of the LRBA as a whole has been benchmarked to commercial terms in substantially the same circumstances.
In particular, an SMSF trustee must ensure that the interest rate, LVR, loan term and security provided as well as the other terms of the borrowing are consistent with an arm’s length dealing.
In forming its view, an SMSF trustee must take into consideration all these factors to ensure it can support the position that the LRBA terms have been continually maintained on an arm’s length basis.
Importantly, a written loan agreement and related documents should be prepared and should reflect the arm’s length terms.
The parties must also act in accordance with the terms of that agreement, eg, ensure regular monthly repayments are being made (at least from 31 January 2017).
SMSF trustees should also obtain quotes from banks, mortgage brokers and from other sources to support the arm’s length terms.
As a result of the latest ATO views expressed in TD 2016/16, SMSF trustees undertaking related party LRBAs should also seek to document cash flow projections in respect of any proposed acquisition that reflects a positive cash flow and capital appreciation wherever possible to minimise any NALI risk.
TD 2016/16 replaces the ATO view outlined in ATO ID 2015/27 and 2015/28, which have been withdrawn. PCG 2016/5 has also been revised following the release of TD 2016/16.
Broadly, the key change is the ATO’s clarification in TD 2016/16 regarding the need to establish a hypothetical arm’s length borrowing arrangement in determining whether NALI applies.
TD 2016/16 is a public ruling that can be relied on by taxpayers and is binding on the Commissioner.
SMSF trustees with related party LRBAs have until 31 January 2017 to ensure that each LRBA is either benchmarked to the LRBA guidelines provided by the ATO in PCG 2016/5 or arm’s length benchmark evidence has been obtained to support the terms of their arrangement.
This benchmark evidence should demonstrate that the parties are dealing on arm’s length terms and preferably moving forward should be accompanied by cash flow projections.
Daniel Butler is director and Rebecca James SMSF lawyers, DBA Lawyers. They can be contacted <a href="https://www.dbalawyers.com.au" target="_blank">here</a>.
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ATO’s revised view on LRBAs and the NALI risk

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From 1 July 2016 Australian residents selling real estate with a market value of $2 million or more will need to apply for a clearance certificate from the Australian Taxation Office (ATO) to ensure amounts are not withheld from the sale proceeds.
Where a valid clearance certificate is not provided by settlement, the purchaser is required to withhold 10 percent of the purchase price and pay this to the ATO.
Background
In May 2013 the government announced that it would introduce a 10% non-final withholding tax on payments made to foreign residents who dispose of certain taxable Australian property with a market value above a specified threshold. The new legislation for this measure became law in February 2016.
The types of taxable Australian property this applies to include vacant land, buildings, residential and commercial property, leaseholds and strata title schemes.
What this means for purchasers
Where a foreign resident disposes of Australian real property with a market value of $2 million or above, the purchaser will be required to withhold 10 percent of the purchase price* and pay it to the Australian Taxation Office (ATO) unless the seller provides you with a variation. Australian residents will need to provide a clearance certificate otherwise a withhold of 10 percent of the purchase price will apply.
What this means for sellers
Australian resident vendors who dispose of Australian real property with a market value of $2 million or above will need to apply for a clearance certificate from the ATO to ensure amounts are not withheld from their sale proceeds.
All transactions involving real property with a market value of $2 million or above will need the vendor and purchaser to consider if a clearance certificate is required.
If a purchase price negotiated between a purchaser and vendor is on an ‘arm’s length basis’, then the purchase price may be used as a proxy for market value.
* Note: The legislation specifies that the 10 percent withholding is on the ‘first element of the cost base’. However, as purchase price is understood by vendors and purchasers, and in many instances will be equal to the ‘first element of the cost base’, we have used the term purchase price for simplicity.
When will this apply?
The new withholding regime will apply to contracts entered into on or after 1 July 2016 for the sale of property with a market value of $2 million or above.
What if there are multiple purchasers?
The market value of all purchasers’ interests in the transaction must be aggregated in examining whether the $2 million market value threshold has been reached. If the aggregated purchase price is $2 million or above, each purchaser must withhold in proportion to their percentage of the total purchase price.
What if there are multiple vendors?
If there are multiple vendors disposing of the property, it is the total market value of the property that determines whether withholding is required by the purchaser.
That is, if the market value is $2 million or above then the purchaser must withhold 10% of this (remembering that the purchase price may be able to be used as a proxy for market value).
If the purchaser has not been provided with a clearance certificate or a notice of variation from any of the vendors, the purchaser must withhold 10% of the purchase price.
The amount of withholding will be in proportion to each vendor’s interest in the property, with the total withholding equal to 10% of the property’s market value.
If any of the vendors provide a clearance certificate or a notice of variation then the amount withheld by the purchaser on that vendor’s proportional interest in the property must reflect this. The purchaser must consider each vendor’s circumstances separately in determining the amount to withhold from each vendor.
Clearance certificates
All real property transactions with a market value of $2 million or above will need the vendor and purchaser to consider if a clearance certificate is required.
Where a clearance certificate is provided, the purchaser is not required to withhold an amount from the purchase price.
Vendors need to provide a clearance certificate to the purchaser on or before the settlement of the transaction.
A clearance certificate must be valid at the time it is provided to the purchaser.
Clearance certificates are valid for 12 months, and can be used by the same vendor for the sale of multiple properties while valid.
Who can obtain a clearance certificate?
Only a vendor who is an Australian resident* can be granted a clearance certificate by the ATO.
* Note: Residency status for tax purposes is not the same as that for immigration purposes, or for the Foreign Investment Review Board (FIRB). If you are unsure, seek professional advice.
What if the vendor does not provide a clearance certificate?
If the vendor fails to provide the clearance certificate by settlement, the purchaser is required to withhold 10% of the purchase price and pay this to the ATO.
This means Australian resident vendors of real property with a market value of $2 million or above must apply for a clearance certificate to ensure no funds are withheld from their sale proceeds.
When can an Australian resident vendor obtain a clearance certificate?
An Australian resident vendor may apply to the ATO for a clearance certificate at any time when considering the disposal of real property. This can be before the property is listed for sale.
How can an Australian resident vendor obtain a clearance certificate?
To obtain a clearance certificate, a vendor who is an Australian resident (or their representative) must complete an online ‘Clearance certificate application for Australian residents’ form. This form will be available on ato.gov.au/FRCGW from 27 June 2016.
A PDF version of the clearance certificate application will be available for contracts that are to be signed and settled within the first two weeks of July 2016. Otherwise, vendors should be encouraged to wait and use the online form from 27 June 2016.
If the vendor is automatically assessed as an Australian resident, a clearance certificate will be issued electronically within days of the application being submitted.
If there are data irregularities or exceptions, some manual processing may be required and the clearance certificate will be provided within 14–28 days.
Higher risk and unusual cases may require greater manual intervention and could take longer to process.
Variation applications
Where the vendor is not entitled to a clearance certificate, but believes a withholding of 10% is inappropriate, they can apply to the ATO for a variation. Reasons for a variation could include:
<ul>
<li>a foreign resident not making a capital gain on the transaction (for example, because they will make a capital loss or a CGT rollover applies)</li>
</ul>
<ul>
<li>a foreign resident not otherwise having an income tax liability (for example, because of carried-forward capital losses or tax losses)</li>
</ul>
<ul>
<li>a scenario where there are multiple vendors, only one of which is a foreign resident.</li>
</ul>
A variation application can be made using the ‘Variation application for foreign residents and other parties’ form. This form will be available on ato.gov.au/FRCGW from 27 June 2016.
A PDF version of the variation application will be available for contracts that are to be signed and settled within the first two weeks of July 2016. Otherwise, vendors should be encouraged to wait and use the online form from 27 June 2016.
In the majority of cases (where the ATO has all the required information and the application is successful), the notice of variation will be provided within 28 days.
The notice of variation should be shown to the purchaser before settlement to ensure the reduced withholding rate applies.
Does the withholding need to be provided prior to settlement?
No. The withholding does not need to be provided until settlement, and it is provided by the purchaser out of the purchase price, not in addition to the purchase price.
Is the transfer of ownership affected?
No, the withholding does not affect the transfer of ownership between the vendor and the purchaser.
In some cases the vendor may wish to postpone settlement if they have not yet obtained a clearance certificate or notice of variation, to avoid the purchaser withholding 10% of the purchase price and paying it to the ATO. In this scenario, the terms of the contract will apply as normal with respect to delays at settlement.
What do I need to consider when selling a property?
Where you are engaged by a vendor you need to know what the purchase price will be to determine whether this measure applies. If the purchase price is below $2 million, and it has been negotiated on an arm’s length basis, then no action is required.
If the purchase price is $2 million or above and the vendor is an Australian resident vendor, you should let them know they will need to obtain a clearance certificate from the ATO to avoid 10 percent of the purchase price being withheld at settlement.
If you are unsure about the purchase price because the property is going to auction, you should let the Australian resident vendor know they will need a clearance certificate if the purchase price reaches $2 million.
If the purchase price is $2 million or above and the vendor is a foreign resident, you should let them know that 10% of the purchase price will be withheld at settlement by the purchaser and provided to the ATO. You should advise them they may be able to vary the amount that is withheld at settlement in certain circumstances, and direct them to the Variation application for foreign residents and other parties form.
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
What if there is a short settlement period?
The same rules apply irrespective of the length of the settlement period. However, if there is a short settlement period you should advise the vendor they will need to obtain a clearance certificate or notice of variation (as appropriate) as soon as possible if they wish to avoid 10 percent of the purchase price being withheld at settlement.
More information
The Australian Institute of Conveyancers was extensively involved in the consultation process for this measure. As such, the ATO is not aware of any inconsistency with the terms of each state’s Conveyancing Act.
This fact sheet contains general information. More detailed information about foreign resident capital gains withholding payments is available <a href="https://www.ato.gov.au/general/capital-gains-tax/in-detail/calculating-a-capital-gain-or-loss/foreign-resident-capital-gains-withholding/" target="_blank">here</a>. 
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Property 101:  July 1 start date for foreign resident capital gains withholding payments

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Australian residents buying or selling real property with a market value of $2 million or more need to be aware of new rules which come into effect on 1 July 2016.
Assistant Commissioner Malcolm Allen said Australian residents who are selling a taxable Australian property with a market value of $2 million or more need to obtain a clearance certificate from the ATO, to confirm a 10 per cent withholding amount does not need to be withheld from the transaction.
“The seller needs to provide a clearance certificate to the buyer by settlement, or the buyer will be required to withhold 10% of the sales price and pay this to the ATO,” Mr Allen said.
“We encourage all Australian residents who are looking to sell property with a value of $2 million or more to apply for a clearance certificate as early as possible.
“It is easy to obtain a clearance certificate. The form is available to download through our website, and there is no fee for clearance certificate applications.”
Clearance certificates are valid for 12 months from issue, and must be valid at the time it is made available to the buyer.
Penalties apply where sellers make false or misleading declarations to the ATO, or where the buyer fails to withhold when they should.
The ATO has been working with real estate agents, conveyancers and legal practitioners to ensure the industry is aware of how to help their clients meet their withholding obligations.
The new rules have been introduced to ensure foreign residents meet their capital gains tax liabilities. Amounts withheld will be credited against their final income tax liability assessed on foreign residents’ income tax returns.
The foreign resident capital gains withholding clearance certificate application form is used by Australian resident vendors to notify us that the foreign resident capital gains withholding does not need to be withheld from the sale of taxable Australian real property (the asset). It provides the details of vendors so we can establish their tax residency status.
The entity that has legal title to the asset is the entity that is required to obtain a clearance certificate for foreign resident capital gains withholding purposes. If the legal title of the property is in the name of the trustee who is holding the property on behalf of the trust or superannuation fund then it is the trustee who should apply for the clearance certificate, not the trust or superannuation fund.
The form needs to be completed and lodged with us as early as practical. The vendor will have to provide the purchaser with an ATO issued clearance certificate on or before the day of settlement of the sale of the asset to ensure no withholding occurs.
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Property 101: The ATO $2 million prestige property sale new rules 

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GUEST OBSERVER
On 6 April 2016 the ATO released a document relating to its view of what is “arms-length” terms when a self-managed superannuation fund (SMSF) borrows from a related party of the fund.   
The release of these guidelines is welcomed in that it provides details of the ATO’s current view of how these arrangements can be structured. Questions have been raised by the SMSF industry in relation to related party loans for a number of years, and this document will assist the industry with an indication of the ATO’s view.
The guidelines provide safe harbours for loan arrangements for the purchase of real property or stock exchange listed shares or units. In providing these guidelines the ATO has expressed the view in relation to the following components of the loan including - 
·        minimum interest rate to be charged; 
·        fixed or variable interest rate terms; 
·        the term of the loan; 
·        the maximum loan to value ratio; 
·        the security to be provided; 
·        the ability for personal guarantees to be provided; 
·        frequency of repayments; and 
·        the type of agreement required. 
In assessing compliance with the above, the ATO is taking a practical approach in allowing SMSF trustees until 30 June 2016 to get their affairs in order with any loans from related parties. 
As such, any SMSF that has borrowed from a related party of the fund should review the arrangements before 30 June 2016 to ascertain if there is any impact on their current borrowing arrangements.
The ATO has also stated in the guidelines that arrangements outside of the safe harbours may be acceptable. However, in the event of the ATO reviewing the arrangements the onus will be on the trustees to “demonstrate this by maintaining evidence that shows their particular arrangement is established and maintained on terms that replicate the terms of a commercial loan available in the same circumstances.” 
The key issue for SMSFs is to review their current arrangements to see if they fit within the safe harbour provided by the ATO.  If they don’t, they should review their ability to fit within the safe harbour or consider their options by either, documenting why the arrangement is commercial, refinancing or winding up the arrangement.
Brad Eppingstall is director, of RSM Australia and can be contacted <a href="https://www.rsm.global/australia/" target="_blank">here</a>.
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ATO’s announcement on Self-Managed Superannuation Funds borrowing from related parties

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Industry lobby group the Housing Industry Association (HIA) has expressed concern at reports that changes to negative gearing might be back on the table, as the government looks at alternative taxation reform options to the GST. 
“New housing is one of the most highly taxed sectors in the economy, and the removal of negative gearing would only make that situation worse and discourage investment,” said HIA chief executive Industry Policy and Media Graham Wolfe. 
The HIA cited research by Independent Economics which concludes that restricting access to negative gearing for residential property hurts investment in housing, erodes affordability and pressures rents on the upside. 
“Negative gearing promotes private investment in the rental market, both stimulating economic activity and taking the pressure off social housing and the public purse,” said Wolfe.
“With an ageing workforce and future pressure expected on publicly funded services, policy settings such as negative gearing that promote wealth creation and self-sufficiency in retirement should be promoted.
“It is important to remember that negative gearing is not the domain of so-called ‘wealthy investors’.” 
He cited ATO figures which show that 79% of tax payers with a rental property declare a taxable income of less than $100,000. 
“In fact, seven out of 10 tax payers with a rental property earn less than $80,000.” 
“A body of independent research has been developed over a number of years that demonstrates categorially that negative gearing is a positive force for the Australian economy,” concluded Wolfe. 
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