IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jul 2016 | Removal date: open ended
Still in force

FDI: Treatment and operations, nes

 On 22 April 2016, the Victoria government announced it would raise foreign property taxes.
According to the press release, "(i)t is only fair that foreign buyers - who do not pay taxes such as payroll tax and GST - fairly contributed to the maintenance and development of government services and infrastructure, just like Victorian taxpayers do. The 2016/17 Victorian Budget will increase the stamp duty surcharge on foreign buyers of residential real estate from 3 per cent to 7 per cent, and apply to contracts signed on or after 1 July 2016. The land tax surcharge on absentee owners will also rise from 0.5 per cent to 1.5 per cent from the 2017 land tax year".
The increase follows the introduction of the stamp duty and land tax surcharge a year earlier. Starting 1 July 2016, there will also be another stamp duty at the federal level. (cf. Related Measures)

AFFECTED COUNTRIES

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