Foreign Acquirer Duty
Queensland Government’s new foreign acquirer duty
The 2016/17 Queensland Budget, announced a new Foreign Acquirer Duty to be paid by foreign buyers of residential property in Queensland.
That means tax will be payable in addition to normal stamp duty rates and will be assessed at 3% of the purchase price.
So if purchasing a $500,000 home the Foreign Acquirer Duty will be an additional $15,000 in duty meaning the total stamp duty payable comes to $30,925.
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)
These provisions will commence on 1 October 2016.
*(Information obtained from KRG Conveyancing.)