Powered by MOMENTUM MEDIA
subscribe to our newsletter

CEO slams ‘greedy’ government stance on foreign investors

The chief executive of an online property agency says the recent government hikes to foreign investor surcharges and taxes could backfire.

iBuyNew CEO Mark Mendel labelled the measures put in place by the New South Wales, Victoria and Queensland governments as “greedy”, saying they go “too far”.

“Foreigners buying property in Australia should be paying some tax but the measures that have been announced by three state governments are over the top and could prove counter-productive for the domestic economy,” Mr Mendel said.

NSW Treasurer Gladys Berejiklian on Tuesday announced that foreign buyers of residential property will be hit with a 4.0 per cent stamp duty surcharge from next week and be required to pay an additional 0.75 per cent land tax from 2017.

The Victorian government also declared it will increase its existing stamp duty surcharge, from 3.0 per cent to 7.0 per cent, and raise the land tax surcharge for absentee owners from 0.5 per cent to 1.5 per cent.

Advertisement
Advertisement

In Queensland, the state government announced foreign buyers will incur an additional 3.0 per cent surcharge.

Mr Mendel said iBuyNew – which specialises in off-the-plan apartment and townhouse sales – will not see much impact in the Victorian market because off-the-plan sales do not attract much stamp duty.

“But in NSW and Queensland, buyers pay full stamp duty for off-the-plan purchases so it will make it more expensive to buy in those states than in Victoria,” he said.

“With other states likely to follow suit, what will be the impact on foreign buyers?

“The roll-on effect could be an economic disaster for Australia with fewer international students, slower population growth and higher unemployment.”

PROMOTED CONTENT


[Related: Foreign investor surcharge 'potentially disastrous']

CEO slams ‘greedy’ government stance on foreign investors
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Latest News

The major bank has confirmed that it will not proceed with the demerger of its New Zealand business. ...

The Senate has passed a bill that will establish an authority that ASIC and APRA are accountable to, two years after it was recommended by t...

The big four bank has said that it has increased its serviceability floor rate to ensure it continues to lend responsibly, and has predicted...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.