To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
Principal of Sydney agency Gunning and former president of the Real Estate Institute of NSW, Malcolm Gunning, says the state government’s 4 per cent stamp duty surcharge on residential property for foreign buyers should be recognised for what it is – pure greed.
“It is important to recognise that this is just a grab for cash from the government and a cop out,” Mr Gunning said.
“The government has found a scapegoat in foreign investors and is playing on xenophobia.
“They are choosing to single out Chinese investors when the real reason house prices are being pushed up is self-funded retirees who are purchasing properties for their super funds.”
Mr Gunning said foreign investors play a vital role in the strength of Australia’s construction industry and should be viewed as a valuable contributor to the economy.
The surcharge came into effect on 21 June 2016, with the NSW government also announcing a 0.75 per cent land tax surcharge for foreign owners from 2017.
Foreign investors have also lost the ability to defer stamp duty payments for off-the-plan purchases for 12 months, as well as the tax-free threshold for the land tax surcharge.
The NSW surcharge comes after the Victorian government increased the stamp duty surcharge for foreign buyers from 3 per cent to 7 per cent, while the Queensland government said foreign buyers will incur an additional 3 per cent surcharge.