How is the foreign ownership surcharge calculated?
The foreign ownership surcharge is calculated based on the value of the interest in residential land, being the value used for duty purposes. The 7% foreign ownership surcharge is in addition to any duty payable.
If Peter, a foreign person, acquires residential land valued at $600,000, the total duty payable is as follows:
Stamp Duty: $26,830
Foreign ownership surcharge (7% of $600,000): $42,000
TOTAL PAYABLE: $68,830
If Peter, a foreign person, instead acquires a 50% (as opposed to 100%) interest in residential land valued at $600,000, such that the 50% interest is valued at $300,000, the total duty payable is as follows:
Stamp Duty: $11,330
Foreign ownership surcharge (7% of $300,000): $21,000
TOTAL PAYABLE: $32,330
If a foreign person acquires a 1% interest in land is the foreign ownership surcharge calculated on 1% of the purchase price?
Yes, the foreign ownership surcharge applies on the interest of 1% acquired by the foreign person.
Is the foreign ownership surcharge calculated on the GST payable on the land?
Foreign ownership surcharge is taken to be duty payable on an instrument. If GST is payable on the land, then duty and the foreign ownership surcharge are payable on the GST inclusive amount.
Calculate the stamp duty and foreign ownership surcharge.
When contacting us please provide your property information (such as address, ownership number, site details, etc) and conveyancer information, where applicable.
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