• New Foreign Owner Duty Surcharge a disappointing blow for WA property market


    REIWA is disappointed the members of WA Parliament have ignored the concerns of the property industry by voting to pass the Foreign Owner Duty Surcharge tax.

    REIWA President Damian Collins said the new tax would likely have significant consequences for the WA property market, which was just starting to show signs of a recovery.

    “The WA property market has endured a challenging few years. We are just starting to see the green shoots of a recovery on the horizon. A new tax will only serve to further dampen our already weak market and deter much needed foreign investment from the state.

    “WA has the lowest level of foreign investment of any state, second only to the Northern Territory. This ill-timed tax will place an additional barrier for people wanting to move to WA and set up a home.

    “Although foreign buyers only make up a small proportion of the WA market, it’s a proportion we can’t afford to lose. Especially at a time when the market is showing signs of stabilising,” Mr Collins said.

    Not only will you need to obtain prior approval from the Foreign Investment Review Board before you can purchase real estate in Australia, foreign buyers of residential properties in Western Australia will be required to pay a seven per cent surcharge from 1 January 2019.

    For the most up to date information about what type of property you are eligible to purchase as a foreign investor, and the process for seeking approval, visit www.firb.gov.au.