Foreign Investor Taxes

Overview

 

There are a range of federal and state taxes that apply to foreign purchases of residential real estate. These taxes include the following:

  • Application fees for foreign buyers of residential real estate, effective 1 July 2016. More

  • An additional stamp duty tax (seven per cent of the purchase price, effective 1 July 2016) for foreign purchasers. More

  • Absentee land tax for overseas buyers, 1.5 per cent effective 1 July 2017. More
  • ​​​Vendors selling real estate worth $750,000 or more will lose 12.5 per cent of the purchase price if they can't prove they are an Australian resident prior to settlement, effective 1 July 2017. More

 

The REIV has held an interactive online webinar on the range of new taxes which apply to foreign purchasers. Presenters included representatives from the State Revenue Office (SRO), Australian Taxation Office (ATO) and the Foreign Investment Review Board (FIRB). For members who missed it, an audio recording of the half-hour webinar is available to download here (right click to download).

REIV members can login for further information.