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Conveyancing Update: Additional Foreign Acquirer Duty

From 1 October 2016 there will be a new tax on foreign investment in residential land in Queensland called additional foreign acquirer duty. This update is a summary of key points.

Additional foreign acquirer duty is an additional amount of transfer (stamp) duty which will be payable if:

  • the land is additional foreign acquirer duty residential land, and
  • the buyer is a foreign acquirer.

What Is Additional Foreign Acquirer Duty Residential Land?

Additional foreign acquirer duty land is land in Queensland that is or will be used solely or primarily for residential purposes where particular conditions are met. These conditions include established homes and apartments, vacant land upon which a home or apartment will be built, land for development for residential use and the refurbishment, renovation or extension of a building for residential use.

Who Is A Foreign Acquirer?

A person will be a foreign acquirer if they are:

  • a foreign individual—an individual other than an Australian citizen or permanent resident,
  • a foreign company—a corporation incorporated outside Australia or a corporation in which foreign persons have a controlling interest, or
  • a trustee of a foreign trust—a trust where at least 50% of the trust interests are foreign interests.

Additional foreign acquirer duty will not apply to a New Zealand citizen who holds a permanent visa or a special category visa as defined in the Migration Act 1958 (Cth).

What Rate Of Transfer (Stamp) Duty Is Imposed?

It will add an additional 3% to the transfer (stamp) duty payable on the purchase of AFAD residential land by a foreign acquirer. This is in addition to fees payable for a FIRB application.

Contact Us

Purchasing, selling or transferring property? Get the best representation. Contact Quinn & Scattini Lawyers on 1800 999 529, email mail@rmold.newwebsite.live or submit an enquiry below.

We are available to meet with you at any of our local offices (Brisbane, Gold Coast, Beenleigh, Cleveland and Jimboomba) or by telephone or video-conference.

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This update is for your information and interest only. It is not intended to be comprehensive, and it does not constitute and must not be relied on as legal advice. You must seek specific advice tailored to your circumstances.

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