The NSW Budget Statement (released on 20 June 2017) has provided further details on how the increased stamp duty and land tax surcharges will affect foreign owned developers.
To recap, on 1 June 2017, the NSW Government announced its intention to increase the surcharges as such:
- Foreign owned purchasers of residential property will be liable to pay an 8% stamp duty surcharge in addition to normal stamp duty on and from 1 July 2017;
- Foreign owned landholders will be liable to pay the increased land tax surcharge of 2% in addition to normal land tax in respect of residential property owned as at midnight on 31 December 2017;
- Australian-based foreign owned developers will be granted a refund of surcharges paid, provided they sell the developed properties within 5 years;
- The refund regime will be backdated to apply from the commencement of the surcharges; and the 12 month stamp duty deferral on ‘off the plan’ sales will only be available to owner occupiers on and from 1 July 2017.