Home Property Australia Taxing offshore investment a risk to supply

Taxing offshore investment a risk to supply

  • May 13, 2015

Taxing offshore investment a risk to supplyThe Property Council has begun discussions with the NSW Government to ensure there is no repeat of Victoria’s new tax penalties on offshore investment.The Victorian Government’s proposal sees a stamp duty premium of 3 percent applied to residential property purchases by offshore investors.It also places a 0.5 percent land tax surcharge on non-residents owning land – but doesn’t just limit the surcharge to residential land.The Property Council’s Victorian division is making the case against the changes. But in NSW, the Property Council is also seeking to ensure there is no repeat.”We are confident the NSW Government will be more sensible than its southern counterparts, but will be actively lobbying to make sure,” NSW Executive Director Glenn Byres said today.”It would be deeply damaging to introduce new taxes, particularly at a time when housing construction is crucial to the economy.”Offshore investment helps secure the pre-sales needed to make projects viable and start construction.”With Sydney facing a housing supply deficit of 190,000 homes within a decade, we shouldn’t risk turning away investment that makes projects happen.”And when offshore capital sits behind the balance sheet of institutional investors that drive major projects, we need to be highly sensitive.”