Powered by MOMENTUM MEDIA
Mortgage business logo

SA goes against foreign investor tax

South Australia has decided not to follow NSW, Queensland and Victoria in imposing surcharges on foreign property investors as part of its state budget.

Daniel Gannon, executive director for South Australia at the Property Council of Australia, said the state now has another competitive advantage when it comes to property-based taxes.

“The message to investors is now very clear: if you want to pay lower taxes on property transactions, then invest in South Australia,” he said.

“Slapping counter-productive taxes on foreign investment is a great big risk for housing supply in our major capital cities.

“What we’re seeing in Queensland, Victoria and NSW is a race to the bottom on populist taxes that fail to address housing supply or improve affordability.”

As part of its state budget, the NSW government recently introduced a 4 per cent stamp duty surcharge for foreign buyers, while the Queensland government introduced a 3 per cent surcharge and Victoria increased its stamp duty tax from 3 per cent to 7 per cent.

[Related: Foreign buyer tax 'playing on xenophobia']

 

Share this article
brokerpulse

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

brokerpulse graph

What are the main barriers to securing a mortgage at the moment?