Those who plan to buy a house in Queensland might need to spend more under new laws on paying capital gains tax.
Buyers of homes for sale worth $750,000 and above will have to check if their chosen developer pays the goods and service tax (GST), which has to be remitted to the Australian Tax Office (ATO).
The rule became effective on July 1, and it essentially makes a home purchase more expensive due to added conveyancing work.
Less Affordable Transactions
You should seek a property lawyer in Townsville if you are unsure on how to comply with the regulation. Legal counsel will be more important since housing deals would include an extra procedure related to GST.
Property solicitors and conveyancers would then have to determine whether to withhold taxes or simply pay the fees to the ATO. The legislation only applies to new properties, so it’s better to consult with a lawyer as early as possible.
Since conveyancing is doable online, you should also be cautious about digital transactions. That’s because phishing poses a serious threat to your financial security.
Scams that target home buyers have become more common — particularly those who fell victim to phishing, which happens when people click links or open attachments on emails that appear legitimate. Hence, buyers need to be sure that all email communication is coming from their conveyancer.
Avoid settling payments through email as much as possible, since one victim lost more than $500,000 after thinking that she was talking to her conveyancer via email. Most law firms use anti-phishing technology for their systems, but it still won’t hurt to be mindful of cybersecurity practices.
The higher cost of buying a house in Queensland means that aspiring home-owners should be more careful with their money, and make sure that their transactions are not vulnerable to online threats.