News

The NSW Government has announced a number of measures designed to improve housing affordability across NSW from 1 July 2017. Some of changes in the housing affordability package will affect foreign residents purchasing residential property in NSW.

• Stamp Duty Surcharge Increases: Foreign residents already pay a 4% surcharge on stamp duty. This will double to 8%. On an $800,000 property purchase, a foreign investor will be paying $95,490 in stamp duty and surcharge compared to $31,490 in stamp duty for an Australian resident.

• Land Tax Surcharge Increases: Foreign residents already pay 0.75% surcharge on land tax, which will increase to 2%.

• Who is Considered a Foreign Person? For the purposes of stamp duty and land tax, you are considered a foreign person if you have resided in Australia for less than 200 days in the 12 month preceding period. Foreign developers will be exempt from these increased surcharges.

If you need advice on an upcoming property transaction, please contact Andrew O’Donnell or myself on (02) 9908 9888 or email angela.boyd@edneyryan.com.au.