Australia’s largest states have rejected International Monetary Fund criticism of surcharges paid by foreign buyers of residential property, saying the higher stamp duty and land duty imposts aimed to raise revenue rather than make more housing affordable for local buyers.

State governments sidestepped questions about the discriminatory nature of these extra taxes – which the IMF says are unfair because they control capital flows based on residence – despite NSW last year exempting residents of some countries from additional duties for that reason.