NSW

A 4% stamp duty surcharge will now apply to all purchases of residential real estate by foreign persons, including foreign individuals, corporations, trusts and governments. This is in addition to normal duty payments on these transactions. The current concession for residential off-the plan purchases, which allows for a delay of up to 12 months in the payment of duty, will no longer be available to foreign persons. There will also be a land tax surcharge of 0.7% to holdings of NSW residential land by foreign persons. This will start from the 2017 land tax year and there will be no tax free threshold and no principal place of residence exemption. The tax surcharge will be additional to normal land tax, which remains unchanged.

NT

A stamp duty discount of 50%, up to the value of $10 000, will be offered to assist first home buyers of established homes valued up to $450,000 in the Northern Territory from 24 May 2016 to 30 June 2017. The $26,000 first home buyer grant for the purchase of new homes remains in place.

QLD

Eligible Queenslanders will be able to access an improved first home buyers’ grant with the Great Start Grant being increased to $20,000 in the State Budget. The grant, which was previously $15,000, is for first home buyers purchasing newly constructed property under $750,000. The $5,000 increase will take effect on 1 July 2016 and apply for 12 months. Queensland also announced a 3% duty surcharge on the foreign purchase of residential property from 1 October 2016.

SA

Stamp duty concessions for off-the-plan apartments will be extended and expanded outside Adelaide. Concessions of up to $15,500 were due to run out at the end of June but will instead last until the end of June 2017. They originally applied only to apartments in Adelaide’s CBD and some inner suburbs but will now apply to any new apartments built anywhere in the state. The SA Government will continue to offer a $15,000 first home owner’s grant for new homes, meaning some people would be eligible for $30,500 in government incentives.

VIC

Victoria’s State Government has proposed a 7% foreign investor surcharge on residential stamp duty from 1 July 2016. This is an increase from the current 3%. It is also expected that the existing 0.5% land tax surcharge will increase to 1.5% from 1 January 2017.

This article originally published in REIA News July 2016.

See also:

Learn about NSW's new strata laws

How the election outcome helps WA property owners

Bear witness to a property revolution in South Australia

The dangers of changing property tax policy

Time to review stamp duty brackets

Property Council urges NSW not to increase stamp duty, land tax for foreigners