- Australia’s federal government plans to review inconsistencies between state taxes and international tax treaties
- The government aims to clarify the interaction between foreign investment fees, state property taxes, and double tax agreements
- Foreign investment fees for purchasing established dwellings will be tripled, and vacancy fees for foreign investors will be doubled
- AUD 3.5 million will be allocated to enhance the Australian Taxation Office’s compliance regime for foreign investors
- Victoria introduced foreign surcharges in 2015, and other states and territories have followed suit
- Revenue NSW incorrectly charged surcharge purchaser duty and surcharge land tax to citizens of certain countries
- The federal government’s announcement suggests that taxes and fees could be invalid due to double tax treaties
- The mechanics of implementing the government’s intention are unclear, and agreement from treaty partner jurisdictions may be necessary
- Deloitte Australia anticipates difficulties, especially in New South Wales, where refunds have been issued to affected taxpayers
- This development coincides with the Vanderstock case, where the High Court ruled on road user charges imposed by Victoria
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
