As of July 1 2016 all state and territory revenue collection agencies will be collecting and required to report to the Australian Taxation Office (ATO) information about all transfers of freehold or leasehold interests in real property. Transfers of real property may give rise to income tax liabilities including capital gains tax (CGT) and goods and services tax (GST). The reports will be submitted quarterly and will assist the ATO in ensuring all tax payers are meeting their tax obligations. 

For the purpose of the reports real property may include land &buildings, an interest in land, rights over land or a licence to occupy land.

Each transaction in the compiled report will include the following:

– property details including land title information, property address and other descriptors;

– transactional information including transfer price, contract date and settlement date;

– identity data of the purchaser/transferee and vendor/transferor including:

  • name, address and date of birth for individuals
  • name, address and ABN for non-individuals
  • foreign identity details.

The Real Property transfer report (RPTR) has been introduced as part of the ATO’s Tax Compliance initiative through its increased third party reporting and data matching programs. The report will help the ATO ensure taxpayers compliance particularly by identifying and assisting in calculating CGT or GST obligations.

The report will allow the ATO to include the information provided in the taxpayers’ pre filling report. This will assist with the lodgement of both individual and non individual tax returns. Furthermore, the ATO aims to increase voluntary disclosures and reduce the occurrence of post lodgement compliance cases.

If you have any questions in regards to you CGT liability or how to legally minimise your tax obligations contact us at The Quinn Group on (02) 9223 9166 or submit an online enquiry form today.