The Land Tax Surcharge is an additional tax imposed on foreign persons who own residential land in New South Wales (NSW).
Here are the key details:
- Applicability:
- The surcharge is specifically for foreign persons who own residential land in NSW.
- It is charged in addition to any regular land tax that the property owner may already be paying.
- Even if a foreign owner does not owe the standard land tax, they may still be required to pay this surcharge.
- Definition of a Foreign Person:
- You are generally considered a foreign person unless:
- You are an Australian citizen, or
- You have lived in Australia for 200 days or more in the 12 months prior to the taxing date of 31 December and are a permanent resident of Australia.
- You are generally considered a foreign person unless:
- Taxing Date:
- The surcharge is assessed based on the taxable value of all residential land owned as at 31 December each year.
- No Tax-Free Threshold:
- Unlike standard land tax, there is no tax-free threshold for the foreign owner surcharge. This means the surcharge applies to the entire taxable value of the residential land.
- Surcharge Rate:
- Starting from the 2023 land tax year, the surcharge rate is 4% of the taxable value of the residential land.
By understanding these points, foreign owners of residential land in NSW can better navigate their tax obligations and ensure compliance with local regulations.
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