Property tax evaders consist mostly of foreign investors than local citizens in Australia. A property tax scheme may be restricted to only citizens after it was discovered that foreign investors had dodged close to 60 million dollars in 2013.
Foreign investors have used negative gearing to their advantage by offsetting the costs of their investment properties like real estate agent fees, maintenance fees and interest on mortgages against rental income; hence they were able to reduce their tax bill by 73%.
Foreign Investor Property Tax
The taxation policy regarding negative gearing is being reviewed and under active consideration, part of the Tax White Paper process. The policy specialists will be investigating the possible impacts from changing the rules on foreign investment. Utmost care and consideration will be practised since foreign investment has been crucial in fuelling the housing construction in Australia in recent years. The government, while hesitant, is investigating a move on abolishing the use of overseas investors in the system, which could result in a complete change in the system.
Some investors may have turned away from traditional lenders and big banks but the big banks seem to remain strong in the rest of the developed world. However, local consumers have fallen out of love with Australian banks, most of them turning to non-bank lenders for home loans, refinancing, second mortgages, investment property loans as well as other type of loans.
Having a mortgage loan can take decades to pay off, and if you add the property tax on your existing properties, your repayments would have to wait when they shouldn’t. If you’re in any situation where you need extra financial support from a trusted non-bank lender, speak to one of the friendly consultants at NSW Mortgage Corp. NSWMC offers free consultation on any type of loan with no obligations so you can be sure to find out what you’re looking for within 48 hours of your first contact with them.
Just fill in the express enquiry form online and the team at NSWMC will take care of you from beginning to end.