Non-residents Land Tax surcharge on NSW residential land
The office of State Revenue has started issuing notification of possible land tax surcharge liabilities. The surcharge is in addition to any ordinary Land Tax obligation.
The Land Tax surcharge was introduced in the 2016 Budget and applies to residential land holdings in NSW held by non-residents of Australia as at 31 December 2016.
Residential Land includes vacant land, holiday homes, strata units and company title units. It also includes crown leases from state and local government.
A foreign owner of residential property includes individuals that do not ordinarily reside in Australia, a corporation, a trustee of a trust, a partner in a limited partnership or a government investor.
The principal place of residence exemption does not apply for surcharge land tax.
Exemptions may apply to:
- Boarding Houses
- Low Cost Accommodation
- Residential Parks
- Retirement Villages
- Primary Production Land
- Child Care Centres
The surcharge is 0.75 per cent on the value of all residential land owned including the principal place of residence.
Example of Calculation:
A Foreign Person owns residential Land with a total land value of $700,000. The Surcharge payable is 0.75% x $700,000 = $5,250
If you require any further information about this change, pleas contact your Goodwin Chivas & Co. representative.