News   In the Media   Slugging foreign buyers with excessive taxes big mistake

Slugging foreign buyers with excessive taxes big mistake

Published on 16th June by Fiona Bennett

Slugging foreign buyers with excessive taxes big mistake

Victoria, NSW and QLD have all recently announced new surcharges and tax increases for foreign investors purchasing property; however according to Mark Mendel, CEO of iBuyNew these surcharges are excessive.

Mendel tells the Real Estate Conversation that the tax hikes flagged by the NSW, Victorian and Queensland governments could backfire if foreign investors take their business elsewhere.

“Foreigners buying property in Australia should be paying some tax, but the measures that have been announced by three state governments are over the top and could prove counter-productive for the domestic economy”.

The roll on effect from these excessive surcharges could mean that Australia will see fewer international students, slower population growth and a higher unemployment rate, which could be disastrous for the Australian economy.

NSW Treasurer Gladys Berejiklian has proposed foreign buyers purchasing residential property should be slugged with a 4 per cent stamp duty surcharge from next week, whilst they should also pay an extra 0.75 per cent land tax from 2017.

Queensland also recently announced that they would charge foreign investors a 3 per cent surcharge, while the Victorian government will increase its stamp duty surcharge from 3 per cent to 7 per cent and hike up the land tax surcharge for absentee owners from 0.5 per cent to 1.5 per cent.

Although foreign buyers in Victoria might not see much impact when buying off the plan property here, due to off the plan property attracting little stamp duty in VIC, foreign buyers in NSW and QLD will find property here in these two states.

Read the full article here, which is published in The Real Estate Conversation: Greedy governments harsh on foreign investors.

Fiona Bennett

Fiona loves to keep our clients engaged and up to date with the latest property news and trends and regularly provides updates through our social media channels.

Did you like this article?

Sign up to the iBuyNew newsletter to receive more articles and property news straight to your inbox.


As seen In the media

3 reasons to choose iBuyNew

Our sole focus is new property

We help you review, compare and choose your ideal off the plan property around Australia

Largest selection in Australia

Choose with confidence knowing you have considered, compared and selected from all our available options

Total Service ManagementTM

We provide you with the decision assistance and guidance from ‘selection to settlement’ and beyond

As featured in: