NSW Treasurer Gladys Berejiklian has announced that the June 21 NSW Budget will include the introduction of foreign investor surcharges on stamp duty and land tax on residential real estate.
The measures are expected to raise more than $1 billion over four years and will fund essential services across NSW. “These new measures will ensure NSW’s property market continues to be an attractive destination for international investors while making sure that we are able to fund vital services into the future,” Ms Berejiklian said.
The NSW Budget will outline a 4 per cent stamp duty surcharge on the purchase of residential real estate by foreign purchasers to commence on Budget day (June 21) and a 0.75 per cent land tax surcharge on residential real estate owned by foreign persons commencing in the 2017 land tax year.
From July, Victoria will have a 7 per cent foreign investor surcharge on residential stamp duty and 1.5 per cent surcharge on some land tax. “The Victorian experience has demonstrated that the measures have not had an adverse impact on the property market,” Ms Berejiklian said.
The Treasurer also announced that foreign investors will no longer be entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases of residential property. Foreign persons will not be provided with a tax-free threshold for the land tax surcharge.
More information on the foreign investor surcharges will be outlined on the NSW Office of State Revenue web page and in the upcoming State Budget. Here are the extra revenues that will be raised by the changes:
|Stamp duty||$226 m||$216 m||$192 m||$201 m||$835 m|
|Land tax||$36 m||$40 m||$43 m||$47 m||$166 m|
|Total||$262 m||$256 m||$235 m||$248 m||$1.001 billion|