Recent changes to land tax and duties will impact foreign property owners.
There has been significant changes to land tax and duties regimes in most states across Australia. This will have an impact on foreign owners investing in certain property, either directly or indirectly.
We have created the below tables to summarise the foreign owner land tax and duty surcharges that apply in Victoria, New South Wales, Queensland, South Australia (foreign purchaser duty only) and Western Australia (foreign purchaser duty only):
We note that the Victorian foreign owner land tax surcharge applies to all land (not just residential land). However, Victoria does provide an exemption for Australian based foreign owners (both Companies and Trusts) who make significant contributions to the Victorian economy.
Further, New South Wales has introduced a foreign land tax and duties surcharge exemption for Australian based property developers under certain circumstances.