Nine Property Changes From 1 July 2017 - June 2017
A perfect storm of federal, state and local government changes kick in on July 1 impacting every homeowner, renter and house hunter. Of all the government changes kicking in from midnight that day, nine were specifically targeted at either home owners, house hunters or renters, according to a list compiled by Queensland Economic Advocacy Solutions.
QEAS director Nick Behrens said "this year is unique in that many legislative changes commence at the same time as the usual suspects that occur every year". Though each change was applied in isolation by the various governments, the combined impact could be overwhelming for some.
Four of the changes that impact property have come from the Federal Government, three were from the Queensland Government and two were from local government/councils. Four of the changes concern the cost of living, three were linked to tax measures and two were either superannuation or grant related, according to QEAS.
HERE'S WHAT YOU SHOULD KNOW:
COST OF LIVING
- Commencement of the Major Bank Levy on NAB, ANZ, CBA, Westpac and Macquarie and anticipated flow on increases in home and commercial lending rates. (Federal)
- Electricity bills in Regional Queensland will rise by 3.3% for households and 4.1% for small businesses (these increases are half of those originally proposed as a result of State Government funding the removal of the Solar Bonus Scheme from electricity prices for three years and directing Energy Queensland to remove costs from network charges across Queensland). (State)
- Council rates across Queensland will rise. Brisbane (2.4%), Gold Coast (1.8%), Sunshine Coast (2.3%), Logan (1.7%), Moreton Bay (3.99%), Western Downs (2.9%), Bundaberg (3.45%), Redland (2.73%), Cairns (1.75%), Townsville (1.48%), Ipswich (2.95%t). (Local Government)
- Water and sewerage charges will increase for example by 2.3% in Greater Brisbane (Queensland Urban Utilities) and 3% in SEQ (Unity Water). (Local Government)
- A 1.5% surcharge will be introduced for absentee payers of land tax, applying to land holdings of $350,000 or higher in addition to other land tax payable (does not apply to Queensland residents but anticipated to impact on property investment). (State)
- Foreign tax residents will be subject to an increased Capital Gains Tax withholding rate of 12.5% (up from 10%) and a reduced CGT withholding threshold of $750,000 (down from $2 million). (Federal)
- ATO will disallow deductions for travel expenses relating to inspecting, maintaining, or collecting rent for a residential rental property. (Federal)
- Individuals looking to buy their first home will be able to access specific voluntary contributions made in to superannuation after July 1, 2017. The voluntary contributions will be accessible by individuals from July 1, 2018. Limits apply to the amount that individuals can contribute under this measure to $15,000 per year and $30,000 in total. (Federal)
- To assist first home buyers entering the housing market, the Queensland First Home Owners' Grant temporary increase, from $15,000 to $20,000 for contracts on newly constructed homes will be extended to eligible transactions entered into between July 1, 2017 and December 31, 2017. (State)