"Chinatown"-Official media of Chinese Australians

2015 New Fiscal Year-Interpretation of Additional Stamp Duty for Overseas Purchasers

澳大利亚维多利亚州政府(State Revenue Office)7月1号在其网站:www.sro.vic.gov.au正式公布了2015-2016财政预算,其中就明确规定了针对海外买家购买澳大利亚房产要缴纳3%额外的印花税以及针对非维多利亚居民要额外缴纳的0.5%的土地税的新政策。

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3% additional stamp duty

This policy only addresses:

Foreign Buyer—How to define an overseas buyer: Anyone other than Australian citizens, permanent residents and New Zealand citizens holding a 444 visa

Overseas company: all companies registered in countries other than Australia; or the company is registered in Australia, but the controlling individual, company or trust company is an overseas person

Overseas trusts: trust companies in which overseas persons, overseas companies or overseas trust companies enjoy major interests

Since July 2015, 7Buyers who meet the above three types of overseas house purchase definitions need to pay an additional 3% stamp duty in addition to the normal stamp duty, but this is only for residential houses and will not be levied on commercial houses such as office buildings, shops, farms, etc. Additional stamp duty.

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How to define 3% additional stamp duty

So here comes the problem. The Australian government clearly stipulates that overseas buyers who hold a visa of one year or more can purchase a self-occupied house, which can only be used for self-occupation, not rented out. However, most overseas buyers do not have a visa for one year or more, so they can only purchase off-plan housing. The 3% stamp duty is calculated based on the total price of the house purchased or based on the land part of the usual purchase of off-plan housing, namely Land Value to calculate?

After studying in detail the revised content on the State Revenue Office website after July 7st, as well as many telephone conversations with officials of the Australian Taxation Office (Victoria State Revenue Office), the editor determined that: the new policy is subject to an additional tax of 1% It is calculated based on the value of the house in the purchase contract, which is the total real estate Contract Price/Sale Price.

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Examples: The property purchased is AUD 50 (off-plan housing)

Land Value (Land Value/Duitable Value) is 20 Australian dollars: stamp duty is about $7000 Australian dollars

**For overseas purchases, an additional 3% stamp duty of the total price will be paid: $50 X 3% = $15000

Total stamp duty to be paid $15000 + $7000 = $22000

Examples: The property purchased is AUD 50 (existing house/second-hand house)

The original full (Land Transfer Duty) stamp duty was about $55000

**For overseas purchases, an additional 3% stamp duty of the total price will be paid: $50 X 3% = $15000

Total stamp duty to be paid $55000 + $15000 = $85000

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FIRB application fee for overseas house purchase

Overseas investors who purchase properties below $100 million must pay an application fee of $5000

To purchase a property valued at $100 million to $200 million, an application fee of $10000 is required

For overseas investors who purchase properties above $200 million, an additional $100 application fee will be added for every $10000 million increase in the house price.

另外: The penalty for violating operators is increased to a fine of $127,500 or 3 years imprisonment (individuals) and a fine of $637,500 (companies). Except for investors holding a New Zealand passport or permanent resident status.

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Cause and effect
Why did the government choose this way?

First, the huge tax collection potential. From 2013 to 2014, foreign investors invested a total of A$140 billion in the Victorian real estate market. Among them, the main force of buying houses is the Chinese.

According to the Victorian Department of Planning, “The reason why buyers look for Melbourne is because they look at the beautiful surroundings of the city and its surrounding suburbs. If you want to settle here, you must make a corresponding contribution to it. These additional fees are levied. It's a kind of compensation."

This statement shows the government's confidence in the Australian real estate market-even if the new tax policy is used to grab money, it will not affect the market and overseas investor confidence too much.

Second, the main purpose is to finance. Within four years, the Victorian government will levy an additional A$4 million and A$2.79 million on stamp duty and land tax. However, this rule does not include New Zealand citizens and foreigners who have obtained permanent residency.

Summary: Enter the market as soon as possible and invest rationally—-

The article is reproduced from Newland Realty Australia

Welcome to the news and discuss cooperation! Editor-in-chief of "Chinatown" WeChat/QQ: 28771796

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