The latest edition of the Housing Industry Association’s Stamp Duty Watch report found that the purchase of a typical Melbourne unit by foreign a investor will incur almost $65,000 in stamp duty and fees.
“The situation is not much better in Sydney, with foreign investors hit for over $58,000 on the acquisition of a unit of average price,” HIA senior economist Shane Garrett said.
“Under the new rules, foreign investors in Brisbane units will be charged $29,000 in transaction taxes alone.”
As part of its state budget, the Victorian government recently increased its stamp duty tax for foreign buyers from 3 per cent to 7 per cent, while NSW introduced a 4 per cent stamp duty surcharge, and the Queensland government introduced a 3 per cent surcharge.
The report also found that stamp duty is adding an estimated $91 per month to household mortgage repayments for a median-priced home.
According to the HIA, the typical stamp duty bill was $17,811 for a non-first home buyer owner-occupier in June 2016, “which added another 3.6 per cent to the cost of purchasing a home”.
“This means that stamp duty eats up almost four months’ worth of after-tax income,” the association said.
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