NOVEMBER 26 2019
ONE extra percentage point increase in the Foreign Investor Duty Surcharge to 8% will mean little to People of either Ultra High Net Worth or High Net Worth … hardly a deterrant!
SEARCH CAAN WEBSITE to find out more about the millions of Billionaires and Millionaires in China … and the burgeoning Chinese Middle Class!
IT has been well known that the lure for foreigners buying real estate in Australia is that they can gain a ‘Permanent Resident Visa’ ..
AND in August 2019 this was revealed in Domain that overseas potential property buyers were approaching local migration agents in Hong Kong seeking Australian residency ahead of buying homes .…
ISN’T it likely that this is happening also in Tasmania?
Georg Chmiel, executive chairman of Juwai.com, the global platform that markets overseas property to the Chinese market (on the mainland and in Hong Kong).
*“It’s more important to obtain legal residency. Expect to see wealthy Hong Kongers first renting in Sydney or at least waiting until they have obtained their visa before they purchase. That way, they can avoid the foreign buyer tax.“
AND ALSO AVOID THE FOREIGN INVESTOR DUTY SURCHARGE IN TASMANIA … HAVING GAINED ‘PERMANENT RESIDENCY’ PRIOR TO PURCHASE!
MEANWHILE there is an affordable rental crisis for Tasmanians in Hobart!
Hobart is Australia’s least affordable city to rent, worse than Sydney, Melbourne and Brisbane
Bill increasing Foreign Investor Duty Surcharge passes lower house
A bill which will increase the surcharge for foreign investors purchasing residential properties in Tasmania has passed the lower house.
The Duties Amendment Bill 2019 will increase the Foreign Investor Duty Surcharge from 7 per cent to 8 per cent, in line with Victoria and New South Wales.
The FIDS for primary production property will remain at 1.5 per cent as announced in the 2019-20 state budget.
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Treasurer Peter Gutwein said the government considered the rates to be fair, reasonable and consistent with surcharges in other jurisdictions.
“While the government welcomes foreign investment in Tasmania, it is important to ensure that foreign investors in Tasmania contribute their fair share and that the property market remains accessible to Tasmanians,” Mr Gutwein said.
The increased surcharge rates will apply to transactions entered into on or after April 1, 2020.
Mr Gutwein said the bill amended provisions relating to the definition of a foreign person to ensure the only persons, companies and trusts that are genuinely foreign pay the surcharge.
“[An] amendment will provide retrospective relief from the surcharge to persons who become Australian citizens or permanent residents within six months of incurring the surcharge,” he said.
Labor finance spokesman David O’Byrne said the bill needed to strike the right balance between ensuring fair taxes are levied on investors who are able to afford it and making sure foreign investors are not driven away.
“When we have bills such as this it’s important to think through the consequences,” Mr O’Byrne said.
Greens leader Cassy O’Connor said the state needed to keep an eye on foreign investors, describing Chinese interest in recent years as a “feeding frenzy”.
“We regard this legislation as a sop to the concern over growing foreign ownership in Tasmania, and a pretty weak one at that,” Ms O’Connor said.
“In the North-West region, more than 30 per cent [of agricultural land] is owned by foreign interests.
“It is a matter of public concern.”