As from the 1st July 2015 foreign buyers of residential properties in Victoria will be slugged an extra 3% duty above normal stamp duty rates. The surcharge will bring the maximum stamp duty rate to as high as 8.5% on residential property transactions. The 8.5% rate will apply to residential properties exchanging hands for more than $960,000.
Understandably some large property developers such as Mirvac are unhappy with the surcharge.
The Victorian Government hopes to raise as much as $300 million from the surcharge over the next four years.