• Foreign Owner Duty Surcharge

    In what is another blow to the WA property market, foreign buyers of residential properties in WA will pay a seven per cent surcharge, coming into effect on 1 January 2019.

    We are extremely disappointed that our concerns have been overlooked by the WA government. We strongly advocated against the bill and encouraged all members of parliament to oppose the foreign owner duty surcharge, with concerns it would further stifle the WA property market, right when it was on the cusp of a recovery.

    For more information on our position, view our Foreign buyer surcharge sends wrong message to vital skilled migrants article.

    Here’s what you need to know.

    Who is eligible?
    • Individuals who are NOT Australian Citizens, Permanent Residents or a special category visa holder
    • A corporation with 50 per cent or more foreign control
    • A trust with 50 per cent or more foreign interests

    What is considered residential property?
    • Each individual house and apartments including those bought off the plan
    • Land where houses or apartments are to be built
    • An existing building to be re-purposed to residential

    Exemptions
    • Residential developments of 10 or more dwellings are considered significant and are exempt
    • Aged care facilities, commercial residential premises such as hotels or boarding houses and retirement villages are excluded from the definition of residential property
    • Additional duty will not apply to purchases of commercial industrial or mixed use properties used primarily for commercial purposes

    If you have any concerns or queries about the foreign buyer surcharge, email REIWA Advocacy and Policy Manager Sadie Davidson at [email protected].