Government Announces Immediate Changes to Property Transfer Tax

Budget 2018 announced changes to Property Transfer Tax that come into effect on February 21, 2018, including:

• Property transfer tax rate on the value of residential properties above $3 million increased.
• Additional property transfer tax rate increased and area expanded.
• The Property Transfer Tax Act is amended to enhance administration and information sharing.
• The limitation period for property transfer tax assessments is extended to six years.
• Additional information is collected on property transfer tax returns, including tax identification numbers for individuals using bare trusts.
• An administrative monetary penalty for non-compliance is introduced.
• The general anti-avoidance rule is extended to the entire Act.
• Access to additional information on property transactions, including information in a multiple listing service database, is enabled.