Authority Updates - New South Wales - September 2016

Foreign Purchaser Surcharge Duty

As of the 21 June 2016. OSR introduced a Surcharge purchaser duty, which is incurred by a foreign person who is acquiring residential property in NSW.

The surcharge is in addition to the duty payable on the purchase of residential property.

If you or your client is a foreign purchaser acquiring land in NSW, there is a requirement to pay an additional is 4 % of the dutiable value of the interest in the residential property. Only the Purchasers duty can be processed on Electronic Duties Online (EDR), the surcharge duty will need to be processed by OSR directly. 

OSR have published a Surcharge Purchaser duty guide to be used in the interim, before the EDR system receives upgrades that will automatically cater for these types of transactions. Upgrades are expected to be completed by the end of 2016.

Before sending documents to OSR for processing you must ensure the additional documents listed in this checklist are enclosed. You can access the surcharge duty calculator here.

Applications can then be sent to:

Office of State Revenue 
GPO BOX 4042
Sydney 2001 

or 

DX 456 Sydney

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Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.