Foreign property buyers and ownership hit in Victoria state budget

Foreign property buyers and ownership hit in Victoria state budget
Foreign property buyers and ownership hit in Victoria state budget

Victoria's state budget, announced yesterday, has moved to increase taxes on foreign buyers and foreign ownership.

The stamp duty has risen in Victoria for a foreign investor from seven percent to eight percent, which puts it at the same rate as in New South Wales.

The budget also focused past the purchase and have changed rules regarding the absentee land tax, where foreign investors leave land purchases empty.

The tax has increased from 1.5 percent to two percent, also in line with the figures in New South Wales.

It is estimated about 3000 foreign property investors will be hit by a boost to the absentee owner surcharge.

Victoria Treasurer Tim Pallas said the tax increases, which have been said to have been enforced to discourage landbanking, were targeted at people who could bear a greater tax burden.

He said that over the past year Victoria has seen its biggest 12 month decline in property prices in the state's history.

The Property Council have described the increased stamp duty for foreign investors as an "own goal"

Carrie Law, the CEO of Juwai, a Chinese website for buyers of overseas property, said the decision to hike taxes for foreigners were "dispiriting but not too damaging."

"Will the higher taxes announced this week make a tremendous difference on the market? The answer is no," Law said.

 

 

 

 

 

 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Victoria Stamp Duty

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