NSW Stamp Duty and Land Tax Increases for Foreigners

Matthew Marcarian   |   10 Jul 2016   |   1 min read

Author: Matthew Marcarian

In a bid to capitalise on the strength of real estate prices, the NSW Government has followed other states including Victoria and Queensland by introducing a stamp duty surcharge of of 4% on the acquisition of all NSW residential land by foreign persons after 21 June 2016.
 
That means that foreigners acquiring real estate in New South Wales with a purchase price of AUD $1M will be approximately 8.5% in stamp duty.
 
A land tax surcharge of  0.75% will also apply to foreign owned New South Wales residential land. The land tax testing date is 31 December of each year.
 
Foreign persons do not include Australian citizens living abroad. CST Tax Advisors is able to assist international clients who have questions regarding these changes.
 
It will be interesting to see whether these changes along with tightening of lending policies of the Australian banks will result in any significant long term cooling of the residential property market in NSW. It may be that low interest rates and uncertainty in global financial markets will mean continued strength in property prices in New South Wales.

NEED ASSISTANCE FOR YOUR SITUATION?

Contact us today
Contact Us
By providing us your information you agree to our privacy policy

More articles like this

 

Tax obligations for Australians working on Super Yachts


21st Jun 2022
Matthew Marcarian

For Australians interested in travel, one of the appeals of working on a super yacht or cruise ship could be the idea that their income becomes tax-free once they leave AustraliaUnfortunately...

 

Are you required to pay inheritance tax as an Australian resident?


5th Apr 2022
Matthew Marcarian

Australia does not have an inheritance tax When a person dies, the estate, or person who inherits the assets does not have to consider any special inheritance tax on the money or assets that are...

 

Potential Changes To Australia’s Personal Tax Residency Laws


16th Mar 2022
Matthew Marcarian

On 11 May 2021, the Australian Government announced that it is considering replacing Australia’s existing residency rules with a new ‘modernised framework’ This update is intended to be...

 

Tax obligations for Australians working on Super Yachts


21st Jun 2022
Matthew Marcarian

For Australians interested in travel, one of the appeals of working on a super yacht or cruise ship could be the idea that their income becomes...

 

Are you required to pay inheritance tax as an Australian resident?


5th Apr 2022
Matthew Marcarian

Australia does not have an inheritance tax When a person dies, the estate, or person who inherits the assets does not have to consider any special...

 

Potential Changes To Australia’s Personal Tax Residency Laws


16th Mar 2022
Matthew Marcarian

On 11 May 2021, the Australian Government announced that it is considering replacing Australia’s existing residency rules with a new ‘modernised...