New Tax Law Changes for Foreign Residents and Businesses
The Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Act 2024 has officially become law, bringing several important tax changes that could impact foreign investors, employers, and small to medium-sized businesses.
Key Changes You Need to Know
1. Higher Tax Withholding for Foreign Property Sellers
From 1 January 2025, foreign residents selling Australian property will face a higher capital gains tax (CGT) withholding rate of 15% (up from 12.5%). Additionally, the previous $750,000 threshold has been removed, meaning that all property sales by foreign residents will now be subject to withholding tax—regardless of the property’s value.
2. Easier Payroll Declarations for Employers
Starting 11 December 2024, employers will no longer need to submit a new declaration for every payroll lodgment through their tax or BAS agent. Instead, they can provide a standing declaration that applies to multiple lodgments, reducing paperwork and streamlining payroll processes.
3. Extended Timeframe for Small Business Tax Amendments
Small and medium businesses now have more time to amend their tax assessments. Previously, they had just two years, but from 1 January 2025, they will have four years to request changes if needed. This gives businesses greater flexibility to correct their tax affairs.
4. Faster and Safer Tax Refunds
To speed up tax refunds, the ATO will now have the ability to retain tax refunds if a business hasn’t provided valid bank account details. This change aims to reduce the use of cheques, making the refund process faster, safer, and more cost-effective.
What This Means for You
These changes could affect property investors, employers, and business owners in different ways. If you’re unsure how the new laws apply to you, Simmons Livingstone is here to help. Get in touch with our team for expert guidance on managing your tax obligations efficiently. Call us at 1800 618 800 or via email admin@simmonslivingstone.com.au.
