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  • Property developers: reporting requirements for NDECs and NNDECs

    Property developers who use New Dwelling Exemption Certificates (NDEC) and Near-New Dwelling Exemption Certificates (NNDEC) to sell property in a development to foreign buyers must report their sales to us every six months.

    NDEC and NNDEC conditions allow developers to sell a maximum of 50% of the total dwellings in the development to foreign buyers.

    You need to provide details about property purchased in your development by foreign buyers as part of your exemption certificate conditions. These details need to include:

    • contact details of the foreign buyer
    • an email address of the foreign buyer
    • an address of the purchased properties
    • the total value of purchases by each foreign buyer within the development
    • the date the contract for sale becomes binding.

    Your reporting date is every six months from the date stated on your exemption certificate using the New Dwelling Exemption Certificate ReportExternal Link, until the allowed percentage of dwellings in your development are sold. Reports should be submitted to FIRBresidential@ato.gov.au.

    You are also required to pay fees for sales under the NDEC within 30 days of the end of the reporting period. The fee payable depends on the price for the acquisition of the interest.

    Fees for sales under an NNDEC are being introduced, consistent with the current fee payment mechanism for a sale of a new dwelling. The legislation to implement these fees is currently being prepared.

    We anticipate that developers will need to send these fees to us in the future for any sale they make under the certificate. However as the law has not yet passed, they do not need to do anything at this time. We will contact them when we are able to provide more details about your obligations.

    Watch our webinar:

    Media: [New and Near-New Dwelling Exemption Certificate reporting]
    http://tv.ato.gov.au/ato-tv/media?v=bd1bdiuntgc89mExternal Link (Duration: 20:19)

    NDECs and NNDECs provide an exemption for foreign buyers from having to obtain Foreign Investment Review Board (FIRB) approval to purchase property in Australia.

    Property developers can provide these certificates to foreign buyers so they don't need to obtain their own FIRB approval to purchase property in your development.

    However, foreign persons wanting to buy property over $3 million need to seek individual FIRB approval from us.

    See also:

    Last modified: 02 Oct 2019QC 60236