Some Australian states increase foreign investors' property surcharges

Some Australian states introduced or increased surcharges on foreign owners and acquirers of residential real estate. In the reporting period, changes came into force for the Australian Capital Territory (ACT), Queensland and Tasmania: • Effective 1 July 2018, a land tax surcharge of 0.75% on assets located in ACT is applicable to foreigners –individuals who are not nationals or permanent residents of Australia. • Queensland increased the ‘Additional Foreign Acquirer Duty’ for foreign real estate acquirers to 7% as of 1 July 2018, up from 3% previously. • Tasmania introduced a 3% foreign investor duty surcharge for foreign real estate acquirers as of 1 July 2018.

• Type:

  • Entry and establishment (Access to land)

• Industry:

  • Services (Real estate activities)

• Sources:

  • Australian Foreign Investment Review Board, Revised guidance — open and transparent sale process requirement, http://firb.gov.au/2018/09/open-and-transparent-sale-process-requirement/, 01 Jul 2018
  • Tasmanian Legislation, PART 3A - Additional duty on certain dutiable transactions involving foreign persons, https://www.legislation.tas.gov.au/view/html/inforce/2018-07-01/act-2001-015#HC2@HP3A@EN, 01 Jul 2018
  • Queensland Government website, Revenue Legislation Amendment Act 2018, https://www.legislation.qld.gov.au/view/pdf/asmade/act-2018-012, 21 Jun 2018