ANNOUNCEMENT 22 Apr 2016In April 2016, the government of Australia announced altered domestic business conditions for foreign investors.
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Press release by Victoria's Treasurer
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)