Foreign investors to pay more land tax and stamp duty
Recent announcements of 2017/18 state budgets in New South Wales and Queensland have changed the landscape for foreign investors of residential real estate and follow the trend set by the Victoria state government in April 2017.
Going forward, stamp duty will double and additional land tax will be charged in New South Wales. The Foreign Investor Surcharge Duty will be doubled from 4 per cent to 8 per cent, while the annual land tax surcharge on foreign buyers will rise from 0.75 to 2 per cent a year. The changes come into effect 1 July 2017.
In QLD the state government in June voted in favour of a 3 per cent charge on Foreign Investors on purchases of both houses and apartments in the form of additional stamp duty.
In Victoria there is already a 7 per cent land tax surcharge for foreign investors per annum.
It is important these tax rates are considered for Foreign Investors purchasing real Australian Property in the Eastern States of Australia.