As part of its June State Budget, South Australia announced that it would levy an additional 4% stamp duty on foreign property buyers and temporary residents, starting from 1 January 2018.
In the wake of its back down over the bank levy, the South Australian Government has decided to lift the stamp duty surcharge on foreign buyers to 7% to make up the revenue shortfall. From The ABC:
The Foreign Investor Surcharge — first proposed in the state budget — will be lifted from 4 to 7 per cent of the value of a home, raising an additional $36.6 million over the next four years…
The Australian Conservatives MLCs have indicated they will support the stamp duty levy, meaning the bill will likely pass…
The raising of its stamp duty surcharge to 7% will bring South Australia’s rate in line with New South Wales (8%) and Victoria (7%), but put it ahead of Queensland (3%) and Western Australia (4%).
South Australia’s surcharge will take their stamp duty applying to foreign buyers to 12.5% for properties worth more than $500,000.
This is obviously excellent policy as it will dampen foreign demand (at the margin) while also providing the State Government with much needed revenue that can be spent for the benefit of the resident population.
