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Description

The foreign purchaser additional duty is payable when a foreign purchaser enters any arrangement to acquire a residential property in Victoria on or after 1 July 2015.

Transcript

Foreign purchasers pay additional duty when they enter into any arrangement to acquire a residential property in Victoria on or after 1 July 2015.

For contracts, transactions, agreements and arrangements entered into on or after 1 July 2015 but before 1 July 2016, the additional duty rate is 3 per cent (even if the settlement date is on or after 1 July 2016).

For contracts, transactions, agreements and arrangements entered into on or after 1 July 2016, the rate is 7 per cent.

Foreign purchaser additional duty is paid over the normal land transfer duty payable on your transaction. It applies to any dutiable transaction that transfers an interest in residential property.

A foreign purchaser can be a foreign natural person, a foreign corporation or the trustee of a foreign trust. More information about these definitions are on our website at sro.vic.gov.au/foreignpurchaser

It’s important to remember that as a transferee from 1 July 2015, you must complete and lodge a purchaser statement with your other land transfer documents. Information provided in this statement will identify if you are liable to pay additional duty.

If you fail to disclose that you are a foreign purchaser, or that residential property is being acquired, we will reassess your duty payable to include the additional duty on the transaction. This reassessment may also attract penalties and interest.

Go to sro.vic.gov.au/foreignpurchaser for more information. You can also call us on 13 21 61. For international callers, please call +61 3 9628 0000.