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Queensland foreign investor tax relief

  • October 05, 2016

Queensland foreign investor tax relief

From 1 October, foreign purchasers will pay an additional three per cent stamp duty when they acquire residential land in Queensland. 

Further clarification on the Additional Foreign Acquirer Duty (AFAD) laws has been provided in three Public Rulings issued by Queensland’s Office of State Revenue.

Whether retirement villages are ‘residential land’, and therefore captured by the AFAD, is determined on a case-by-case basis. 

Australian-based companies that are foreign-controlled can seek relief from the AFAD if they comply with certain criteria, including being able to demonstrate if they are a ‘significant developer’ or are undertaking ‘significant development’. 

The retirement village development or developer must be ‘significant’ by being:

  • A development of or more residential lots; or
  • for regional projects – a development of equivalent local significance; or
  • a developer who has undertaken the development of or more residential lots over the previous 12 months (or on average over 5 years).

Alison Quinn, president of the Retirement Living Council and CEO of foreign-owned village operator RetireAustralia, welcomes the rulings. 

“This announcement means Queensland remains a viable location for Australian-based foreign-owned operators to develop new communities for Queensland’s growing older population.

“Retirement villages play an important role in providing affordable age-appropriate housing where independent retirees can access health services, enjoy recreational facilities and engage with their peers.

“Relief from the AFAD means retirement villages can continue to be great places for senior Queenslanders to live.”

The Property Council continues to oppose the tax, however the ex gratia exemption process will assist in minimising the impacts on our industry.

Download the Property Council AFAD factsheet here and media release here.

Download the Queensland OSR’s Public Rulings here, here and here and Frequently Asked Questions here.

Hear more from Alison Quinn and other retirement living experts at the National Retirement Living Summit on 28-29 November in Melbourne. Register here to attend.