SYDNEY: Australia’s most populous statewill double property taxes for foreign buyers, the New SouthWales treasurer said on Thursday, a move aimed squarely at Chinese investors as well as appeasing voters worried abouthousing affordability.
A surcharge collected from foreigners on home sales willrise from 4 % to 8 %, New South Wales TreasurerDominic Perrottet told reporters in Sydney.
The move comes shortly after a policy change by Australia’snational government to impose foreign property owners with finesif their properties are vacant for at least six months of theyear, as well as a similar surcharge hike by Victoria state lastyear.
China is the largest source of foreign investment inAustralia, and Chinese investors ploughed two-thirds of a totalA$47.3 billion sum in to the property market in the 2016financial year, government figures show.
But there are concerns that foreign buyers have priced manylocals out of the market, and that investment homes that remainvacant only add to housing shortages.(Reporting by Tom Westbrook; Editing by Shri Navaratnam)
Source: Reuters