In the 2016/17 Queensland Budget, the treasurer announced a new Foreign Acquirer Duty payable by foreign buyers of residential property in Queensland.
How much is the additional duty?
The tax will be payable in addition to normal conveyancing stamp duty rates and will be assessed at 3% of the purchase price.
For example, on a $500,000 home, stamp duty at normal investment rates would be $15,925. The Foreign Acquirer Duty would add an additional $15,000 in duty bringing the total to $30,925.
When does the new tax commence?
The provisions will commence on 1 October 2016.
Who will be affected?
The Foreign Acquirer Duty will apply to purchases by-
- Individuals who are not Australian citizens or permanent residents
- Companies incorporated outside of Australia
- Companies incorporated in Australia in which foreign persons have an interest of 50% or more
- A trust where 50% of the “trust interests” are held be foreign persons (i.e. unit holders or beneficiaries)
If you would like further advice in relation to the new Foreign Acquirer duty or Foreign Resident Withholding Capital Gains Tax measure or any other matter, do not hesitate to contact our experienced conveyancing solicitors on 1300 132 088.