Recorded Webinar: Vacant Land and Land Banking: Keeping Ahead of the Changes

The uncertain Australian property market means that land banking options and opprtunities are more relevant than ever.

In addition, there is an increasing Government focus on land banking, with the Federal Government releasing draft legislation which seeks to discourage or at least modify the practice. From 1 July 2019, the proposed legislation will significantly limit deductions for expenses associated with holding vacant land. However, the proposed amendments do not apply to all entities and there are a number of exceptions that advisers need to consider. This session surveys the current tax and duty issues for vacant land and land banking, with a focus on the upcoming reforms. It covers:

• Land banking – what is it and why do it?
• Consideration of the general tax and GST framework
• Budget 2018/19: denial of deductions for costs associated with holding vacant land
• Treasury Laws Amendment (Measures for a later sitting) Bill 2018: Limiting deductions for vacant land:
  • Which entities are caught by the changes?
  • Do the amendments capture all losses and outgoings?
  • How is vacant land defined?
  • Do the amendments apply to a property developer that holds land for the purposes of carrying on a business?
  • Special rules for land containing ‘residential premises’ within the meaning of the GST Act
  • Denial of deductions for cost base expenses included in the cost base
  • Planning and structuring opportunities and restrictions
• Is an enterprise being carried on for GST purposes while land is banked?
  • Why is this important
  • Structuring the acquisition and land holdings
• Land tax imposts:
  • Primary production land - accessing exemptions:
  • when is farm land vacant with no dominant use of primary production?
  • managing mixed zoning land for land tax purposes (Metricon, Leppington Pastoral)
• Annual vacancy fee (Cth)
• Vacant residential land tax (Vic)
• Practical case studies