Stamp Duty Surcharge:

Do you know you may be classified as a foreign person & liable for the stamp duty surcharge on property investment, even if you are a permanent resident & Citizen of Australia? Each State sets own rules, see the below.

 

New South Wales

Stamp duty surcharge8%
Affected personsThe person must be in Australia for 200 days or more within the 12 months immediately prior to contract date to be ordinarily resident.
Persons who do not meet the 200 days rule and are either a
- permanent visa holder
- NZ citizen with 444 visa, or
- partner visa holder (subclass 309 or 820)
are considered foreign persons. Also, a temporary visa holder is considered a foreign person.
Other provisions affectedNo longer entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases of residential property.

Victoria

Stamp duty surcharge7%
Affected personsPersons who are not a:
- citizen or permanent resident of Australia, or
- NZ citizen with 444 visa.
A foreign corporation includes:
- corporations incorporated outside Australia, or
- corporations incorporated in Australia if a foreign person or corporation has a controlling interest in the corporation.
A foreign trust is a trust where a foreign natural person or corporation has a substantial interest in the trust estate of that trust.
Other provisions affectedFirst home buyer concession of duty not available for foreign persons unless purchased with Australian spouse.

Queensland

Stamp duty surcharge7%
Affected personsPersons who are not a:
- citizen or permanent resident of Australia, or
- NZ citizen with special category visa.
A foreign corporation includes:
- corporations incorporated outside Australia, or
- a corporation incorporated in Australia if a foreign person or corporation has a 50% interest in the corporation.
A foreign trust is a trust where a foreign natural person or corporation has a 50% interest in the trust estate of that trust.
Other provisions affectedAdditional stamp duty applies to:
- Landholder duty, and
- Corporate trustee duty

South Australia

Stamp duty surcharge7%
Affected personsPersons who are not a:
- citizen or permanent resident of Australia, or
- NZ citizen with special category visa.
A foreign corporation includes:
- corporations incorporated outside Australia, or
- a corporation incorporated in Australia if a foreign person or corporation has a 50% ownership or voting interest in the corporation.
A fixed trust is a foreign trust where a foreign natural person or corporation has a 50% capital beneficial interest in the trust estate of that trust.
A discretionary trust is a foreign trust where a foreign natural person or corporation would be beneficially entitled to receive any distribution, whether or not is it exercised.

Western Australia

Surcharge will apply from 1 January 2019. It is proposed at this stage.

Stamp duty surcharge4%
Affected personsForeigners, including individuals, corporations and trusts.

Tasmania

Stamp duty surcharge3%
Affected personsForeign natural person
Foreign corporation
Foreign trustee (including a nominee)
Other provisions affectedAdditional 0.5% on the proportion of dutiable value of primary production directly or indirectly acquired by a foreign person.

 

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