There’s been a fair bit of talk in the media about both the housing bubble in Australia and about the effects that foreign investment and foreign citizens may be having on housing prices. The government has been discussing various ways of cooling housing prices and now the Victoria Government has made the first move.
The State Revenue Office brought in a new transfer duty starting the 1st of July 2015 that will affect all residential purchases, transfers and even long term leases of residential land in Victoria for foreign investors.
Everyone (Australian citizen or not) will be required to complete a “Purchaser Statement” as part of the settlement process, this form will then be used by the State Revenue Office to decide whether or not you are classed as a foreign investor or not.
As the criteria are based on the “transferee” this may not be as straightforward as you would think, particularly if you are purchasing through a trust or a company structure.
At this point, this new duty is purely for residential properties and only in Victoria but it is quite likely we will see variations on the theme begin to pop up around the country.
The important point to note is that unlike many of the other Revenue Office forms where one borrower is sufficient with this form each individual is required to complete a separate form and submit them, either online through the website http://www.sro.vic.gov.au/buying-property/complete-purchaser-statement-0 or through your conveyancer.