NSW Surcharge Stamp Duty & Surcharge Land Tax Deemed Inconsistent With International Treaties
On 22 February 2023, the NSW Revenue Office has released a statement confirming that the NSW Revenue Office’s imposition of Surcharge Stamp Duty & Surcharge Land Tax in relation to property within NSW is inconsistent with an international treaty that was entered into by the Federal Government with the governments of New Zealand, Finland, Germany & South Africa.
Surcharge Stamp Duty is imposed on foreign citizens who buy property in NSW at the time of purchase. The surcharge was as much as an additional 8% of the price of the property. Surcharge Land Tax is a yearly tax that is imposed on foreign citizens who continue to own property in NSW. The current tax rate is 4% of the rateable value of the property. These surcharges may also be imposed on foreign citizens who also hold a permanent residency visa in Australia.
The NSW Revenue Office will no longer require the payment of Surcharge Stamp Duty or Surcharge Land Tax for citizens of New Zealand, Finland, Germany & South Africa. This may also apply to foreign corporations, trusts and partnerships that have affiliations with these nations.
If you are a citizen of New Zealand, Finland, Germany or South Africa and paid Surcharge Stamp Duty or Surcharge Land Tax on property within NSW after 1 July 2021, please get in contact with our team as you may be eligible for a refund.
This article was prepared with the assistance of Eoin White.
Butlers Business Lawyers and Chamberlains Law Firm have merged!
Joining forces with the Chamberlains Team has expanded our capabilities beyond what we thought possible. This means introducing a new cast of talented legal practitioners along with a massive expansion in expertise areas such as Building & Construction, Insurance Law, Private Wealth Law and more. This alliance will ensure that new and existing clients will experience a higher calibre of legal support in a variety of areas with the help of some new faces. Learn more about Chamberlains Law Firm here.