Property 101: Conveyancing and the TASA
New tax rules in place since July 2016 now apply to vendors disposing of certain taxable Australian property under contracts.
Conveyancers may need to register with the Tax Practitioners Board, when assisting clients to meet new requirements under the foreign resident capital gains tax withholding measures.
Ian Taylor, chair of the Tax Practitioners Board, said depending on whether a conveyancer’s client is the vendor or purchaser, foreign resident capital gains withholding forms may need to be completed and submitted to the ATO which include clearance certificate, rate variation application and the purchaser payment notification form.
"The TPB considers there are sections of each of these forms that involve the provision of a tax agent service.
"It is also recognised that conveyancers, who perform certain services relating to the purchaser payment form, are exempted from being registered with the TPB as a tax agent until 31 December 2017.
"Before assisting clients to meet the requirements of the foreign resident capital gains withholding regime, all conveyancers who are not registered with the TPB as tax agents, need to understand what they can or cannot do under the TASA.
"If conveyancers complete and submit these forms to the ATO on behalf of a client for a fee or reward, they may need to be registered with the TPB, either immediately or in the future"
For further information about whether or not conveyancers need to be registered with the TPB click here.
