WW: Hi. I’m here with Ben Andrews who is Head of Business Advisory for the Announcer Group. Ben you’re qualified to answer this question. What changes have been made to the foreign investment rules?
BA: The main changes right now for foreign purchasers or orders of land at the moment—what we’re seeing a lot of—is foreign purchasers are getting hit with additional stamp duty when they acquire a property. And also, ongoing additional land tax purely for owning the property and not being an Australian citizen or not meeting the residency requirements.
This is a state-based residency requirements, not federal based. And so you know, some examples right now for stamp duty, if you acquired a property and didn’t meet these tests. You’re looking at another eight percent on the property value.
So, for a two-million dollar property purchase which is not that unheard of in Sydney, we look at about 160, 000 dollars as stamp duty. And that’s on top of the stamp duty you would pay regardless—so from dollar one, about eight per cent of that property value.
Okay, now again, this is different state by state. And then also, land takes about point seventy five of a percent, year on year, on the land value here in Sydney.
WW: Thank you very much.