If you are a foreign person who owns residential land in NSW, you must pay a land tax surcharge in addition to any land tax you may already pay.
The surcharge rate is:
- 0.75 per cent from the 2017 land tax year and
- two per cent from the 2018 land tax year onwards.
You must pay the surcharge on the taxable value of all residential land that you own as at 31 December each year.
- A principal place of residence exemption may apply to you from the 2018 tax year. It applies for
- one year
- one residential property, and
- residence requirements must be met.
- You may be required to pay the surcharge even if you do not pay land tax.
The surcharge is assessed in relation to each parcel of residential land and is proportional to ownership.
- There are no joint assessments and secondary deductions do not apply.
- There is no tax-free threshold applicable to the surcharge.
Surcharge purchaser duty also applies to the purchase of residential property and other dutiable transactions defined under the Duties Act.