The Foreign Buyers Surcharge will be increased from four to seven per cent, bringing Western Australia in line with other States that levy a surcharge.
From January 1, 2019, the surcharge will apply on the dutiable value of residential property purchased by foreigners, including corporations and trusts, in Western Australia. This will be in addition to the normal transfer duty payable on the property. The surcharge is restricted to residential property, with commercial transactions and significant residential developments remaining exempt.
The seven per cent rate brings Western Australia in line with New South Wales, Victoria and South Australia, all of which currently levy their surcharges at seven or eight per cent, and Queensland, which has announced an increase in its rate to seven per cent from July 1, 2018.
The increase brings the total estimated revenue from the surcharge to $123 million over the period of 2018-19 to 2021-22.