Foreign buyer surcharge passes WA Parliament


In what is another blow to the WA property market, foreign buyers of residential properties in WA will pay a seven per cent surcharge, coming into effect from 1 January 2019.

 

We are extremely disappointed that our concerns have been overlooked by the WA Government. We strongly advocated against the Bill and encouraged all members of parliament to oppose the Foreign Owner Duty Surcharge, with concerns it would further stifle the WA property market, right when it was on the cusp of a recovery.

See ” Foreign buyer surcharge send wrong message to vital skilled migrants” for more information on our position.

Here’s what you need to know

Who is eligible?

  • Individuals who are NOT Australian Citizens, Permanent Residents or a special category visa holder
  • A corporation with 50 per cent or more foreign control
  • A trust with 50 per cent or more foreign interests

What is considered residential property?

  • Each individual house and apartment including those bought off the plan
  • Land where houses or apartments are to be built
  • An existing building to be re-purposed to residential

Exemptions

  • Residential developments of 10 or more dwellings are considered significant and are exempt
  • Ages care facilities, commercial residential premises such as hotels or boarding houses and retirement villages are excluded from the definition of residential property
  • Additional duty will not apply to purchases of commercial industrial or mixed-use properties used primarily for commercial purposes

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