In today’s Queensland State Budget it was announced that the Additional Foreign Buyers Duty (AFBD) – or the foreign buyer tax – will be increasing on July 1, 2018, from 3% to 7%.
Below we provide an example of the implications, using the existing example supplied by the Qld Office of State Revenue.
A foreign individual signs a contract to buy a house with a dutiable value of $365,400. The house will be an investment property, so they don’t qualify for a home concession.
Using theÂ transfer duty rates, the duty is calculated as:
$1,050 (for the first $75,000)
+ $10,164 ($3.50 for every $100 in $290,400, the balance above $75,000)
= $11,214 (the transfer duty payable).
An individual is a foreign person and liable for additional foreign acquirer duty. AFAD is calculated as:
$365,400 Ã— 7% = $25,550.
The total amount of duty payable is now $36,765 ($11,214 + $25,550).
This now brings Qld’s foreign buyer tax in line with Victoria’s which is also 7% but remains lower than NSW’s which is 8%.