If you are a non Australian Resident with intent to purchase property in Western Australia you will have to pay seven per cent surcharge from January 1, 2019 after the Foreign Buyers Surcharge legislation was passed through the Legislative Council on Tuesday 9 October 2018.
The intent is that foreign buyers will contribute to Budget repair and the infrastructure they benefit from.
The change in legislation brings Western Australia in line with other Australian States who already have a Foreign Buyers Surcharge policy.
Both the Liberal and Nationals parties chose to support foreign property speculators over WA households, however the legislation passed with the support of the WA Greens and One Nation parties.
It is expected the WA householders will benefit from the Foreign Buyers Surcharge legislation.
What others say…
- Since 2008, foreign investment in our CBD office space has leapt from 26 to 41 per cent, with every expectation for the trend of international ownership to continue, according to analysis conducted by global real estate firm JLL for The Sunday Times.
- REIWA president Damian Collins said that the new tax, which is on top of transfer duty, would likely have significant consequences for the WA property market, which was just starting to show signs of a recovery.
- Singapore and Malaysian investors make up a significant portion of Perth’s CBD foreign owners, notes Property Council of Australia WA executive director Lino Iacomella.
- Damian Stone, principal of independent Y Research, said since “riding the red dust” high of the mining boom, Perth opened up to the world. “With rents dropping the way they are, it’s more advantageous to be a tenant,” Mr Stone said.
With mixed feelings over the change, only time will tell if the benefits out way the ownership.