With the start of a new year, brings new changes to the Western Australian property market, with a foreign buyers duty coming into effect from 1 January 2019. This new duty will impose an additional 7% ‘duty or surcharge’ to any foreign buyers wishing to purchase residential property within WA.

This new duty will affect;
• Any individual that is not an Australian Citizen, Permanent Resident or hold a special category visa.
• Corporations that have a 50 per cent or more foreign control
• A trust that is controlled by a foreign person or there is a 50 per cent foreign interest

The duty will be applied to individual residential houses, apartments or dwellings - including those bought off the plan. Any buildings that are to be converted into residential dwellings or vacant land where houses or apartments will be built.

There are a number of exemptions including;
• For residential developments with 10 or more dwellings
• Commercial residential properties such as hotels or retirement villages
• For any commercial industrial or mixed-used property that is used for commercial purposes, no additional duty will apply.

If you’re unsure if you will be affected by this new change then a trusted settlement agent or lawyer can assist you with understanding whether or not the duty is payable.

For further detailed information head to the Western Australian Government, Department of Finance Website here.