NSW 2016 State Budget – Not so kind on foreign investors.
The 2016 Budget revealed many changes to the property world in New South Wales. Some of you may be happy about and others you may not be so pleased with if you are a foreign investor in NSW.
From 21 June foreign investors will be hit with 4% stamp duty surcharge when they are purchasing residential real estate in Australia. Along with this foreign persons will not be entitled to the 12 month grace period for the payment of stamp duty for off- the plan purchases they are accustomed to.
Stamp duty is not the only expense due to rise for foreign investors. Land tax is also due to rise by 0.75% from 1 January 2017.
Both surcharges will not apply to Australian citizens, permanent residents of Australia or New Zealanders who have been in Australia for a period of at least 200 days in the last 12 month.
Treasurer Gladys Berejiklan told reporters “The NSW stamp duty tax measures are expected to raise $1 billion for the government over the next four years”. She also has said “It is expected the surcharges would not deter foreign investors, placing a question over whether they will improve housing affordability, particularly in Sydney. 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,”
At Attwood Marshall Lawyers our experienced Property and Commercial team are here to help you through this process. If you require assistance in relation to this blog or buying or selling in NSW or QLD, please contact our department manager Holly Gilholme on 07 5506 8202 or email for a free quote today.