Bill amendments to provide tax relief on foreign investor surcharge fees

The Property Council has secured amendments to the State Taxation and Other Acts Amendment Act 2016 that will provide savings for investors in commercial residential properties.

Over the past month, our negotiations with the State Government, Opposition and the Greens have led to changes in legislation that will enact the increased surcharges on foreign investors, announced in this year’s State Budget.

These amendments, which have passed Parliament, will excise commercial residential premises from the definition of ‘residential property’ for the foreign purchaser surcharge. This means that premises like hotels, motels and serviced apartments will not be captured by the duties surcharge, and neither will retirement villages, residential care villages and supported residential services. This is a significant result for these sectors of the industry.

In addition to these changes, the Property Council has also made submissions to both the Government and Opposition on a number of other issues which have existed since the original taxes were introduced last year. 

These include lengthy assessment periods for applications of surcharge exemptions, and the exclusion of trusts from the land tax surcharge exemption.

The Property Council will continue opposing the imposition of foreign investor taxes which presently enjoy bipartisan support.