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.

Example 1

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

Example 2

David owns residential land valued at $600,000, of which he transfers 50% ownership to Peter, a foreign person.

In this scenario, because Peter is acquiring a 50% (as opposed to 100%) interest in the 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 on $300,000: $11,330

Foreign ownership surcharge applied to 50% interest (7% of $300,000): $21,000

TOTAL DUTIES PAYABLE for Peter's 50% acquisition: $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.

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