NSW joins Queensland and Victoria in imposing specific taxes on foreign investment for residential property purchases.
Additional land tax to be paid 0.75% from start of 2017 and additional 4% stamp duty from 21 June 2016.
Foreign investors will no longer be entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases of residential property. Foreign persons will not be provided with a tax-free threshold for the land tax surcharge.
In comparison from July, Victoria will have a 7 per cent foreign investor surcharge on residential stamp duty and 1.5 per cent surcharge on some land tax.