Business Law Articles
Monday, 19 September 2016
We have previously identified problems for deceased estates arising from the introduction of the withholding tax regime on 1 July 2016 in our July edition of the Report Newsletter (page 2). Clearly there had not been sufficient consultation in relation to the ramifications of the new legislation.
The Australian Taxation Office released a variation instrument on 6 September 2016 which provides that the acquisition by a legal personal representative as a result of an individual's death, an acquisition by a beneficiary as a result of a direct transfer from the deceased or a legal personal representative of the deceased, and an acquisition by a surviving joint tenant of the deceased joint tenant’s interest in an asset will not require a withholding payment and therefore the amount to be paid to the Commissioner is varied to nil.
Executors and administrators of deceased estates will still need to have regard to the withholding tax regime when selling real property to third parties.
For more eNews Publications, click here to be directed to our website.
t +61 7 3224 0370