The Victorian Government has passed legislation to increase the duty surcharge on purchasers of residential property by foreign persons to 7% for contracts entered into from 1 July 2016. The changes contain a number of other changes to the foreign purchaser duty regime. Those changes include:

expanding the concept of residential property to property that is capable of being used primarily as residential property (eg even if it currently isn’t)
expanding the concept of residential property to include short term accommodation (which includes a hotel, motel, serviced apartment, retirement village or student accommodation)
expanding the concept of intending to construct a residential building to include intending to undertake land development (which can be triggered by merely applying for a permit, applying for rezoning or a plan of subdivision)

The changes also include an increase in the land tax surcharge for foreign absentee owners from 0∙5% to 1∙5%.

For advice or further information please contact:

Phil Broderick
Principal
T: 03 9611 0163
M: 0419 512 801
E: pbroderick@sladen.com.au

Melissa Brazzale
Associate
T: 03 9611 0161
E: mbrazzale@sladen.com.au