Foreign investment in residential land
David LIMBRICK (South-Eastern Metropolitan) (12:23): (818) My question is for the Treasurer. The federal government recently announced certain restrictions on foreign purchase and ownership of residential property in Australia. However, in the state of Victoria we have special taxes, such as land transfer and land tax, which are imposed on foreign purchasers. One would assume that this would have some sort of impact on the state finances and the forward estimates. My question for the Treasurer is: what consideration has been given to this new restriction by the federal government, and what sort of impact will this have on the state’s finances?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:24): I thank Mr Limbrick for his question. The foreign purchaser additional duty, which is an additional charge for foreign purchasers of property in Victoria in addition to stamp duty, has been bringing in roughly $200 million a year. Obviously some of the changes will reflect an update to our revenue estimates, but what I would say is that my information in relation to the collection of FPAD is that it is predominantly on new properties. My understanding of the federal announcement is that it will apply to existing properties, so it will not be as simple as not receiving revenue. There is also, I guess, the obvious consequence of foreign purchasers moving from existing dwellings to new dwellings. All of these will be considered in advice that DTF will provide in relation to estimates.