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In the latest announcement from the NSW Treasurer Gladys Berejiklian, foreign investors will be hit with additional stamp duty and land tax hikes in a bid to curb foreign investment and raise state funding. 

The additional surcharges will come into effect from June 21 when Berejiklian hands down the NSW state budget.

The latest charges include an additional 4 per cent stamp duty surcharge plus a 0.75 per cent land tax surcharge commencing in the 2017 land tax year.

“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.

Not surprisingly, the announcement has stirred up angst & frustration amongst some of the nation’s largest developers of high-rise apartments that typically sell large proportions of their projects to foreign buyers.

The image below highlights the potential impact of the additional surcharges on foreign investors: 1465895584423

The new tax is set to add circa $1 billion to the state government over the next four years which will fund essential services across NSW, Ms Berejiklian said.

The NSW announcement follows both Victoria and Queensland announcing new taxes on foreign buyers of residential property.

It also follows recent tightening of lending to foreign buyers as major banks pull back amid concerns of oversupply in some inner city apartment markets, particularly in Melbourne, Sydney & Brisbane.

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If you’re interested in learning more about these latest developments or have any questions relating to property, don’t hesitate to speak to one of our investment consultants today.