- Rate will put Western Australia on par with New South Wales, Victoria, South Australia and Queensland for all foreign ownership of residential property
- Increased Foreign Buyers Surcharge rate of seven per cent is estimated to raise an additional $50 million over the period to 2021-22, at no cost to Western Australians
- Surcharge applies to all purchases of residential property by foreign individuals and entities from January 1, 2019
The State Government will increase the rate of the Foreign Buyers Surcharge to seven per cent to help place the State's finances on a more sustainable footing, and bring Western Australia in line with other States that levy a surcharge.
Consistent with the McGowan Labor Government's election commitment, the 2017-18 State Budget included a four per cent surcharge on foreign buyers of residential property, to enable a freeze on TAFE fees and contribute to Budget repair.
From January 1, 2019, the surcharge will apply on the dutiable value of residential property purchased by foreigners, including corporations and trusts, in Western Australia. This will be in addition to the normal transfer duty payable on the property. The surcharge is restricted to residential property, with commercial transactions and significant residential developments remaining exempt.
The seven per cent rate brings Western Australia in line with New South Wales, Victoria and South Australia, all of which currently levy their surcharges at seven or eight per cent, and Queensland, which has announced an increase in its rate to seven per cent from July 1, 2018.
The increase brings the total estimated revenue from the surcharge to $123 million over the period of 2018-19 to 2021-22.
The Government will introduce legislation into the State Parliament in the near future to give effect to this announcement and provide certainty for foreign investors.
Comments attributed to Treasurer Ben Wyatt:
"Increasing the Foreign Buyers Surcharge to seven per cent will bring Western Australia in line with other States, and provide this Government with additional revenue to help the State's financial position.
"Importantly, this decision increases a surcharge that will only apply to foreign investors. Western Australian households and businesses will not pay the surcharge.
"It is fair for foreign owners of residential property, who benefit from our services and infrastructure, to make a contribution to Budget repair."
Treasurer's office - 6552 5900
