05 May 2015
New surcharge for foreign buyers of Victorian residential property
by Keshni Maharaj
The new surcharge to apply to contracts entered into (or a relevant acquisition made) on or after 1 July 2015.
In the Victorian Budget, handed down today, the Victorian Government has announced that a 3% surcharge will apply to foreign purchasers when they buy or acquire (directly or indirectly) residential property in Victoria. The 3% surcharge will be in addition to any transfer duty or landholder duty payable (currently the top rate of transfer duty/landholder duty is 5.5%).
It is currently proposed for the surcharge to apply to contracts entered into (or a relevant acquisition made) on or after 1 July 2015.
A 0.5% land tax surcharge is also proposed to apply to land owned by absentee owners from 1 July 2016.
As the amending legislation has not been introduced into Parliament yet, no further details are available.
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