On 21 February 2023 Revenue NSW announced significant changes to surcharge purchaser duty and surcharge land tax in NSW.
Are you a citizen of NZ, Finland, Germany and South Africa? – you are affected by the international tax treaties?
Currently, foreign buyers who purchase residential-related property in NSW must pay an additional 8% surcharge purchaser duty on top of any transfer duty.
It has been determined that NSW surcharge provisions are inconsistent with international tax treaties entered into by the Australian Federal Government with New Zealand, Finland, Germany and South Africa.
From 21 February 2023, individuals that are citizens of New Zealand, Finland, Germany and South Africa purchasing residential-related property or land in their own capacity will no longer be required to pay surcharge purchaser duty or surcharge land tax in NSW.
Entities such as corporations, trusts or partnerships that are affiliated with these nations may also not be required to pay surcharge purchaser duty or surcharge land tax in NSW.
Are you eligible for a refund for the surcharge paid?
You may be eligible for a refund of surcharge purchaser duty paid on or after 1 July 2021, if you are from one of the nations concerned.
Revenue NSW will identify customers and transactions that may be eligible for the removal of surcharge purchaser duty.
Do citizens of NZ, Finland, Germany or South Africa need to hold a specific visa or satisfy any residence requirements?
No, a citizen of one of the above nations is not subject to surcharge purchaser duty regardless of their Australian visa type or presence in Australia.
Am I entitled to lost interest on the money while it was held by the NSW Government?
If your transaction is identified for a possible removal of surcharge liability, Revenue NSW will only refund surcharge purchaser duty and where applicable, interest or penalty tax you paid on the surcharge purchaser duty component.