At the beginning of 2018, the surprising news has
come from the real estate market of Queensland: according to the latest content in the 2017-2018 financial and economic reports,
the Queensland government is scheduled to rise the additional stamp duty for the overseas investors from the current 3% to
7% from July
1, 2018.
It is worth noting that until now, the Queensland government
has not issued any certain documents confirming the rise in stamp duty, but according
to the Queensland government's
budget this year, the increasing part of the stamp duty has been put into the government budget.
In fact, Queensland's overseas stamp duty has always been kept
at the lowest price
in Australia, only about 3%
of the total house price. As a result, many overseas buyers have come to Queensland to buy real estate. Whether rent or make the preparation for future immigrants, purchasing overseas property has become a trend!
The Queensland government stated in the report that the aim of taking this measure is to increase state revenues through a series of policies. In addition, the
government plans to increase the stamp duty of properties worth more than $10 million by 0.5
percent, that is 2.5
percent.
Over the past few years, compared with other states,
Queensland additional stamp duty for overseas buyers has
always kept at the lowest levels (3%)
across the country. As a
result, the investment environment with low taxes has attracted investors from all over the world.
But the regional
tax benefits have soared since 2016, when Victoria's stamp duty has risen from
3% to 7%. Governments in other Australian states are also starting to implement
this kind of policy.
Then western Australia also raised stamp duty for overseas buyers from 4% to 7% in 2017.
In the 2017 Queensland general election, the Labour party
declared that if we were re-elected we would raise the stamp duty for overseas buyers, which has received the support of many local residents. As a
result, starting from July 1, 2018, those buyers without Australian residency in
Queensland will have to pay more than
double the original tax.
If you are going to buy a house worth $500,000, the original stamp duty will only cost
$15,000.
After the rise in
tax, you will have to pay $35,000, which means you have to pay more than 100,000 yuan...
As a result of this increase, Queensland also joined the high stamp duty package
throughout Australia, as well as New South Wales (8%), Victoria (7%), South Australia (7%) and Western Australia (7%).
Why does overseas stamp duty adjust again
Regulation is for the purpose that overseas investors should enjoy the high
reward of the real estate in Australia and contribute to local
infrastructure construction at the same time as the Australians do, while these contributions will eventually
bring property appreciation, making overseas buyers benefit from it.
Whether stamp duty rises or not, house prices will definitely rise. It is the wisest choice to
buy a house early to increase its value, taking the advantage of exchange rate and allocating overseas assets.