Foreign buyers: Victoria Treasurer announces hike in stamp duty
Foreign buyers will have to pay more stamp duty on residential real estate, and higher land tax, under Victorian government reforms that could raise an extra $500 million over four years.
Treasurer Tim Pallas on Friday said next week’s budget will increase the stamp duty surcharge for foreign buyers from three to seven per cent, and the land tax surcharge for absentee owners from 0.5 to 1.5 per cent.
“Victorians would say we deserve a contribution back into the state services from foreign purchases,” Mr Pallas told radio station 3AW.
Labor first introduced the surcharges for overseas property owners in last year’s budget, which Mr Pallas said had seen
“no adverse” effect on the property market, with foreign investment continuing to grow.
“We think it is fair, that if you are purchasing in the state of Victoria and you haven’t made a long term investment in the delivery of amenity that makes Melbourne such a desirable place to live then there a should be an additional payment,” he said.
“We think it is a modest, but a valuable contribution.”
Shadow Treasurer Michael O’Brien said Premier Daniel Andrews had broken a promise by raising taxes.
And he warned that the tax hike would be paid for by Victorian renters, who would be slugged by landlords.
“Victorians know you simply can’t believe a word this man says when it comes to tax or financial management,” he said.
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