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For urgent attention - new Foreign Withholding Annexure

20 Jun 17

New Foreign Withholding Annexure - it captures more transactions now!

This impacts every sale above $750k on or after 1 July 2017. As a result of the recent Federal Budget (and passed last week in the Senate despite REIA lobbying hard to get the threshold lifted to a higher amount), agents must now include the appropriate Annexure regarding Foreign Withholding Tax if the sale price on or after 1 July 2017 is $750k or above (reduced from the original higher threshold amount of $2M). The reduction means more homes in South Australia will be included in the net and must have the appropriate Annexure included in the contract. To protect members from any mistake, we are automatically including the Annexure when you prepare a contract (within REI Forms Live). This puts the onus on you to uncheck and remove if the sale price is less the $750k. This automation will cease after a period of time when agents are more familiar with this requirement (as a result of the reduction).

Those preparing contracts that are likely to be signed sealed and delivered prior to 30 June AND the sale price is above $2M must use the correct Annexure relevant to the $2M or above. On July 1, we will be removing that Annexure referring to the $2M amount as it ceases relevance and application given the reduced (and capturing more sales) threshold amount to $750k.

PLEASE DON’T BE THE AGENT IN SOUTH AUSTRALIA THAT LOSES YOUR VENDOR 12.5%  OF THEIR SALE PRICE BECAUSE YOU FAILED TO INCLUDE THE CORRECT ANNEXURE FOR SALES ABOVE $750K FROM 1 JULY 2017.

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