NSW Treasurer Gladys Berejiklian announced a 4% stamp duty surcharge on residential property bought by foreign investors being effective from 21 Jun 2016, and a 0.75% land tax increase on residential real estate for foreign owners starting from 1st Jan 2017.
Gladys Berejiklian said, “These new measures will ensure NSW’s property market continues to be an attractive destination for international investors while making sure that we are able to fund vital services into the future. The Victorian experience has demonstrated the measures have not had an adverse impact the property market.’’
Foreign buyers refer to people who are neither Australian citizens nor permanent residents. The surcharges will also not apply to New Zealand citizens who have stayed in Australia for at least 200 days in the past 12 months.
It is also worth to mention that the land tax surcharge will apply to all foreign owners of residential real estate, not only those buying into the NSW market from now.