New property taxes around Australia today

Today, the first day of a new financial year, introduces a raft of property tax changes around Australia.

According to the Property Council of Australia here’s what’s different:

Australia wide:

  • A new withholding regime applies to foreign resident vendors. For property transactions of $2 million-plus, purchaser must withhold 10% of price unless vendor shows a clearance certificate from the ATO.
  • FIRB application fees will be indexed for C.P.I.

NSW 751969_l

  • Foreign buyers of residential property pay additional stamp duty of 4% on transactions from 21 June, 2016.
  • Separate 0.75% land tax surcharge on residential real estate owned by foreigners starts in 2017 land tax year (January).
  • Foreign investors no longer entitled to 12-month deferral for the payment of stamp duty for off-the-plan purchases of residential property.
  • Foreigners lose tax-free threshold for land tax surcharge.
  • Mortgage duty abolished.
  • Duty on the transfer of business assets or a declaration of trust over “business assets” (other than land) will be abolished from July 1, 2016.

You may also want to read: Adding more taxes for foreign investment


  • Foreign buyers will pay 7% additional stamp duty on residential property, up from 3%. Read this for more information: A bad day for foreign buyers
  • The government has increased the variable rate for the Fire Services Property Levy (FSPL) on industrial property by 11% and commercial property by 6%. The variable rate for the FSPL on vacant land will rise 240%.


  • First Home Buyers Grant to increase from $15,000 to $20,000.
  • Foreign investor changes do not come into effect until October 1.

South Australia

  • Stamp duty concessions of up to $15,500 apply for eligible purchases of off-the-plan apartments (effective from June 20, 2016).


  • Stamp duty removed from land or asset transfers as part of business reconstruction.


  • Land Tax: Fixed component will rise by $100 and land tax calculation for multi-unit dwellings will be based on total AUV value of the land rather than individual AUV of the unit.
  •  Commercial rates: Average increase of 7% in 2016-17 with a fixed charge of $2235.
  • Commercial stamp duty: Reductions from 1.8% to 1.48% for transactions up to $200,000; between 3% and 2.5% for $200,00 to $300,000; and reductions from 5.17% to 5.09% above $1.455 million.
  • Fire and Emergency Services Levy: A valuation-based charge will apply for commercial properties with progressive marginal rating factors applied to the average of the 2014, 2015, and 2016 AUV values.
  • General Insurance Duty: To be abolished.

Northern Territory

  • First home buyers will receive a 50% stamp duty discount for established homes valued up to $450,000 and capped at $10,000 thereafter. This actually commenced on May 24th  2016 and will continue until June 30th  2017.

Western Australia

  • There are no changes planned

Also published on Medium.

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Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit

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