Surcharge purchaser duty of NSW since 1 July 2017.

The NSW Government in the 2017 Budget announced changes to this scheme which are planned to take effect from 1 July 2017.

The 2016 NSW Budget introduced a 4 per cent surcharge purchaser duty on the purchase of residential real estate by foreign persons from 21 June 2016. As a result of the 2017 Budget, for agreements entered into on or after 1 July 2017 the surcharge purchaser duty rate has increased from 4 per cent to 8 per cent. The surcharge is in addition to the duty payable on the purchase of residential property.

Foreign persons will no longer be entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases of residential property.

This surcharge will also apply to landholder transactions if there is a landholder liability and one or more of the properties owned by the landholder is classified residential and the purchaser is a foreign person who purchases shares or units in the landholder.

The purchaser/transferee declaration must be completed when buying or acquiring land in NSW.

Permanent residents (including New Zealand citizens)

From 20 June 2017, permanent residents, including New Zealand citizens holding a Special Category visa (subclass 444), will be exempt from surcharge purchaser duty on their principal place of residence, if they occupy the home for a continuous period of 200 days within 12 months of purchase.

The exemption will be granted if the person declares that they will complete the 200 day residence requirement.

For instructions on how to process transaction through EDR, please refer to Interim Arrangement for Processing on EDR pdf.

Recent change

Foreign person surcharges - Discretionary trusts

Revenue Ruling G 010 has recently been introduced.

It exempts a discretionary trust from surcharge taxes with retrospective effect if the trust deed is amended to remove foreign persons from the list of beneficiaries at any time between the introduction of the surcharges and the present date, and otherwise within six months after the liability was assessed.


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