Key Points:

The new surcharge to apply to contracts entered into (or a relevant acquisition made) on or after 1 July 2015.

In the Victorian Budget, handed down today, the Victorian Government has announced that a 3% surcharge will apply to foreign purchasers when they buy or acquire (directly or indirectly) residential property in Victoria.  The 3% surcharge will be in addition to any transfer duty or landholder duty payable (currently the top rate of transfer duty/landholder duty is 5.5%).

It is currently proposed for the surcharge to apply to contracts entered into (or a relevant acquisition made) on or after 1 July 2015

A 0.5% land tax surcharge is also proposed to apply to land owned by absentee owners from1 July 2016.

As the amending legislation has not been introduced into Parliament yet, no further details are available.