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Land Tax Surcharge

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John | 09 Aug 2017, 02:42 PM Agree 0
Hello, Does anyone know if the new Queensland Surcharge for absentee/Forein buyers is for new Purchersers or new additions,
or are they to slam those already holding properties?
If it is the later it will personally Kill me and necessitate a quick sale!
John. New Zealand
  • Property88 | 09 Aug 2017, 02:54 PM Agree 0
    It looks like it applies from 2016:
    The liability for your transaction arises on or after 1 October 2016

    More here:

    Additional foreign acquirer duty

    Additional foreign acquirer duty (AFAD) is an extra amount of duty that applies to transactions that are liable for transfer duty, landholder duty or corporate trustee duty. AFAD applies when all the following conditions are met:

    You are an acquirer for the purposes of the transaction and a foreign person.
    Your transaction involves AFAD residential land (including chattels or existing rights).
    The liability for your transaction arises on or after 1 October 2016.
    AFAD residential land is land in Queensland that is or will be used solely or primarily for residential purposes, where particular conditions are met. AFAD residential land includes:

    homes and apartments (including chattels)
    vacant land on which a home or apartment will be built
    land for residential development, such as
    smaller unit blocks
    housing subdivisions
    major developments with a residential component
    buildings refurbished, renovated or extended for residential use.
    Other types of residential property such as retirement villages and student accommodation are considered on a case-by-case basis.

    AFAD residential land does not include land used for hotels and motels.

    This guide explains who a foreign person is for the purposes of AFAD and how the additional duty is applied to relevant transactions.
    (https://www.business.qld.gov.au/industries/service-industries-professionals/professional-financial-services/transfer-duty/investors/afad)
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