Authority Updates - New South Wales - February 2017

Surcharge land tax (surcharge) was introduced in the 2016 NSW Budget, and is to be paid by foreign persons who own residential land in NSW.

From March 2017, NSW Office of State Revenue (OSR) will issue assessment notices that detail surcharge land tax calculations.

About the surcharge

The 0.75 per cent surcharge is to be paid from the 2017 calendar year on residential land in NSW owned by foreign persons. The surcharge, including the principal place of residence, is assessed in relation 
to each parcel of land and is proportional to ownership. There are no joint assessments and secondary deductions do not apply. 

The surcharge is in addition to any land tax which may be payable and the tax-free threshold does not apply.
A foreign person can be any of the following;

  • an individual
  • a corporation
  • a trustee of a trust 
  • a beneficiary of a land tax fixed trust
  • a government 
  • a government investor
  • a partner in a limited partnership.

Australian citizens are not foreign persons, no matter where they live. An individual, who is not an Australian citizen, is a foreign person if they are not ordinarily resident in Australia.

What's required? 

Foreign persons should register and pay any land tax and/or surcharge by the due date to avoid penalties. Those who already pay land tax should update their status and residential land details online here using their Client ID and correspondence ID on their annual land tax assessment notice.
Those who have not previously paid land tax should call OSR on 1300 139 816 to arrange log in details. 
More information required? 

Visit the website or contact the Office of State Revenue on 1300 029 816.

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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.