NSW foreign property buyers to pay higher stamp duty and stamp duty

NSW foreign property buyers to pay higher stamp duty and stamp duty
NSW foreign property buyers to pay higher stamp duty and stamp duty

Foreign property investors in NSW will be hit with a 4 percent stamp duty surcharge when buying homes and apartments in next week's state budget.

The NSW State Government has forecast the move would raise more than $1 billion over four years, the Daily Telegraph reported today.

And it is tipped, despite suggestions to contrary, that overseas investors would also cop an extra 0.75 per cent land tax surcharge on residential property.

Treasurer Gladys Berejiklian said she was confident the extra costs would not deter foreign buyers given other states had similiar measure.

"It's been proven successful in Victoria, we also know that Queensland is moving in this direction and we also know that most foreign investors are likely to absorb this cost and proceed with their transaction anyway," she said.

"We do not feel that this will in any way compromise the property market at all.

“If you asked most economists, they would say people who are going to invest in these houses who are foreign investors are going to do it anyway,” News Ltd reported.

“We assume they’re going to invest anyway; we (want to) ensure (they are) paying tax revenue for our services. This is one way for us to ensure a strong revenue (stream) into the future,” she said.

“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.

“The Victorian experience has demonstrated the measures have not had an adverse impact the property market,’’ she said.

The Government also said foreign investors would no longer be entitled to a 12-month deferral for the payment of stamp duty for off-the-plan purchases of residential property.

Also overseas buyers would not be given a tax-free threshold for the land tax surcharge in the 2017 tax year.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

Stamp Duty Residential Sales

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