Discriminating against foreign investors? NSW, Victoria beg to differ
Foreign investor surcharges are discriminatory taxes with political appeal: they raise additional revenue from buyers who don’t vote. NSW and Victoria have differing approaches, but they can’t both be right.
Foreign investor surcharges are discriminatory taxes with obvious political appeal. They raise additional revenue from a cohort of purchasers who cannot vote, while fostering the political narrative that these taxes help reduce competition and price pressures for local purchasers.
All six states impose duty surcharges on foreign purchasers of residential-related property at a rate of either 7 or 8 per cent. Neither the ACT nor the Northern Territory impose duty surcharges.
