Queensland to slug foreigners with absentee land tax surcharge

Queensland to slug foreigners with absentee land tax surcharge
Queensland to slug foreigners with absentee land tax surcharge

Queensland's state government has decided to tax foreign landowners with a 1.5 percent absentee land tax surcharge on land worth more than $350,000, following NSW and Victoria's moves to levy more taxes on foreigners.

The absentee land tax surcharge comes on top of the 3 percent transfer duty surcharge, which was introduced in 2016.

The new levy is expected to generate revenue of $20 million a year from 2017-18. 

Queensland Treasurer Curtis Pitt was quoted as saying by The Courier Mail that the “surcharge ensures that absentee owners of land are making a fair contribution and it has no direct impact on Queenslanders.”

Earlier this month, New South Wales announced it would double its foreign investors stamp duty surcharge to 8 percent as part of premier Gladys Berejiklian’s moves to address housing affordability ahead of the budget. 

And Victoria announced it would impose a tax on homeowners who leave their properties vacant in a bid to make housing more affordable in and around Melbourne

Victoria's Vacant Residential Property Tax will be levied at 1 percent, multiplied by the capital improved value of the taxable property. 

In May's Federal Budget, the Australian government also announced a new tax on any vacant properties owned by foreigners in a bid to improve housing affordability.

The new charge is expected to bring in $16.3 million over the forward estimates being monitored by the Australian Tax Office.

Tags: 
Land Tax Foreign Investment

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