Update to Surcharge Land Tax Liability in Relation to International Tax Treaties
On 21 February 2023, Revenue NSW announced that NSW surcharge provisions are inconsistent with several international tax treaties entered into by the Australian Government. We posted an article on this in March (see the full article?here). At this time, it was found that individuals from New Zealand, Finland, Germany, or South Africa who have purchased residential-related property are no longer required to pay surcharge purchaser duty and surcharge land tax due to these international tax treaties.
India, Japan, Norway and Switzerland have since been identified as additional countries that have international tax treaties with Australia, which affects surcharge purchaser duty and surcharge land tax liability.
What does this mean?
Individuals who are citizens of the following countries are now no longer required to pay surcharge purchaser duty or surcharge land tax when purchasing residential-related property or land in their own capacity.
The refund period has now been extended. Purchasers, transferees and landowners from the countries concerned who paid surcharge purchaser duty or surcharge land tax on or after 1 January 2021 will be able to claim refunds from Revenue NSW. It was previously 1 July 2021.
For further information, please visit?here