Changes in Surcharge Purchaser Duty and Surcharge Land Tax

Commencing on 8 April 2024, persons from New Zealand, Finland, Germany, South Africa, India, Japan, Norway and Switzerland may also be liable for Surcharge Purchaser Duty (SPD) and Surcharge Land Tax (SLT). The changes come in accordance with the Treasury Laws Amendment (Foreign Investment) Act 2024. Revenue NSW published in February 2023 that inconsistencies in international tax treaties meant that land purchasers from the previously listed nations were not required to pay SPD or SLT. However, the new Commonwealth Act states that international tax treaties have no effect on state duties and land taxes.

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Who will this affect?

SPD is currently calculated at 8% of the dutiable value to be paid alongside transfer duty. Foreign persons may be liable to SPD where there is:

-????????? Agreements for sale of land

-????????? Property transfers

-????????? Declarations of trust

Solicitors representing property purchasers from the listed countries should be aware of the SPD and SLT changes and the impact it will have on their clients when purchasing property in Australia.