AFAD - Any way to get round this?

Discussion in 'Legal Issues' started by Matthew Lama, 30th Mar, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Matthew Lama

    Matthew Lama Member

    Joined:
    7th Jan, 2020
    Posts:
    9
    Location:
    Adelaide
    Hi folks,

    Hope you are all healthy and safe in these strange times.

    I'm wondering if anyone can help...

    I'm on a 489 visa and hoping to become a PR in time, based in SA. I notice I'll get stung by AFAD if I buy before I get PR status.

    Does anyone know if there is a way to get around this? - I was thinking about setting up an SPV potentially, not sure if the same would apply in that situation.

    Appreciate any thoughts.

    Matt
     
    Matthew Lama, 30th Mar, 2020
    #1
    Perthguy likes this.
  2. JDM

    JDM Well-Known Member

    Joined:
    19th Jan, 2016
    Posts:
    465
    Location:
    Brisbane
    Not sure on the duty position in SA but potentially an option agreement to delay the acquisition date?
     
    JDM, 30th Mar, 2020
    #2
    Matthew Lama and Terry_w like this.
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,517
    Location:
    Sydney
    I would be seeking legal advice. The option could be dutiable for the surcharge. Also check the FIRB and seek legal advice since a defective acquiistion is not always made good later. You could acquire a obligation to sell if you depart.
     
    Paul@PAS, 30th Mar, 2020
    #3
    Matthew Lama likes this.