Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Stamp Duty

<html><body>
Higher priced properties in Sydney and Melbourne is not the only obstacle stopping people from entering these markets.
<div>
Varying from state to state, another factor contributing to the high entry cost to housing is Stamp Duty, particularly in Australia’s largest two capital cities.
Levied by each state and territory and payable by the receiver when a property is transferred, stamp duty varies remarkably across the states and territories based on the price of the property, the type of buyer (owner occupier / first home buyer / investor) and the type of property. 
CoreLogic head of research Tim Lawless said, “Calculating how much stamp duty is applicable on a property purchase can be confusing due to the significant differences regionally, but also due to the complexity of rules, concessions and limits that are applied to the calculation of stamp duty.” 
Based on the median dwelling value across each capital city, stamp duty estimates can range from a whopping $32,680 in Melbourne to a modest $9,000 in Brisbane.
<h3>Median dwelling value</h3>
<img src="https://corelogic.com.au/resources/property-pulse/article-graphs-img/2016-12-12--image1.jpg" alt="2016-12-12--image1" width="500" height="261">
Mr Lawless said, “Even though the median dwelling value is $200,000 higher in Sydney compared with Melbourne, the cost of stamp duty on the median valued home is actually slightly lower in Sydney, at $31,763, due to higher stamp duty rates in Victoria.”
<h3>Estimated stamp duty payable on median value dwelling</h3>
<img src="https://corelogic.com.au/resources/property-pulse/article-graphs-img/2016-12-12--image2.jpg" alt="2016-12-12--image2" width="500" height="543">
In some states, first-time home buyers can be offered substantial concessions on stamp duty; however there is generally an upper limit. 
For example, first home buyer property transactions in Victoria with a price tag of $600,000 or less will enjoy a 50% reduction on their rate of stamp duty. 
In Queensland, first home buyers purchasing a property priced less than $550,000 can realise a discount of more than $8,000.
Stamp duty rates can also be higher for investors. 
Surprisingly, Mr Lawless observed that New South Wales, which is the state with the largest proportion of investors, does not charge a premium rate of stamp duty on this segment of the market.
The three largest states also charge a stamp duty premium on property purchasers by foreign buyers.
He said, “Because stamp duty costs are percentage based, as dwelling values move higher, stamp duty costs can rise disproportionately faster due to bracket creep. 
Over the past five years dwelling values in these two cities have increased by 62% and 38% respectively which implies at least a commensurate rise in stamp duty costs in these cities.
The high transactional costs associated with housing are likely to be one factor that is contributing to a slowdown in the number of sales across the country.” 
While stamp duty is generally the largest transactional cost associated with buying, there are other costs such as building and pest inspections, conveyancing, removalists and more that also need to be factored in and are likely to be dampening participation in the housing market. 
Mr Lawless said, “Add to this the fact that most lenders will be seeking a 20% deposit and the barriers to entry become even more substantial.”
For state governments, stamp duty is one of the largest revenue sources. 
In the 2014-15 financial year, state and local government taxation revenue was recorded at $89.278 billion having increased by 7.0% over the year. 
The taxation revenue was comprised of $45.203 billion or 50.6% from property related taxes (mostly stamp duty and municipal rates). 
While total tax revenue increased 7.0% over the year, property tax revenue increased by 10.5% highlighting that property taxes are the largest source of taxation revenue for state and local governments and are rising at a rapid pace.
Mr Lawless said, “If transaction numbers across the housing market continue to trend lower, state governments are likely to encounter a budget hole as stamp duty revenue falls.   
For this and associated reasons, we may find state governments become more serious about considering a broader based land tax that is applicable to all property owners rather than a stamp duty that is payable only across the small percentage of properties that transact each year.”
</div>
</body></html>

tlawless-5VLUrbAk9s

Stamp duty an obstacle for first home buyers entering the market

<html><body>
The NSW government is bracing for a slowdown in Sydney's property market, as Treasurer Gladys Berejiklian​ released the government's half-yearly budget review.
It shows the government expects a surplus of almost $4 billion this financial year.
But the review cautions about the continued strength of the property market.
Residential stamp duty increased by 19 per cent in 2014-15, and by 13.4 per cent in 2015-16.
<div>
<div id="adspot-300x250-pos3" data-google-query-id="CPSt1urv79ACFUmCvQodjYgKSQ">But Ms Berejiklian's budget review, released on Tuesday to Fairfax Media, predicts stamp duty will grow by an average 4.8 per cent per year over the next five years.</div>
<div data-google-query-id="CPSt1urv79ACFUmCvQodjYgKSQ"> </div>
<div data-google-query-id="CPSt1urv79ACFUmCvQodjYgKSQ">The government raised almost $6.3 billion in stamp duty in the financial year to the middle of 2016.</div>
</div>
The government has resisted calls to lower or reform stamp duty.
Laing+Simmons Managing Director Leanne Pilkington warns the revenue party may soon be over, as more and more people simply can’t afford to move.
"The exorbitant cost of stamp duty in NSW is the most significant barrier to the purchase of property in this state," Ms Pilkington says.
"This is because for many people it’s cheaper to stay put and renovate than move, reducing the amount of stock on the market, irrespective of the number of new developments springing up in certain areas.
“Stamp duty is one of the most significant influences on property price growth in NSW. It contributes to fewer listings, so transactional activity suffers, and the flow-on impacts are felt down the supply chain: household goods suppliers, homewares retailers, white goods manufacturers, the list goes on,” Ms Pilkington says.
</body></html>

jchancellor-FAypfDUnLy

NSW stamp duty receipts set to fall for Treasurer Gladys Berejiklian

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
NSW Premier Mike Baird should take care of his own backyard rather than attempting to interfere in federal politics.
The comment’s follow Mr Baird’s address to the National Press Club in Canberra (29 November 2016) when he called for changes to negative gearing to be considered. 
Mr Baird is attempting to deflect attention away from what he and his government have control over, stamp duty and land tax. 
If he is serious about making comments in regard to taxation reform he needs to start looking in his own backyard and conduct a review of these outdated and unfair taxes.
Mr Baird must butt out of the federal taxation debate, stop pointing the figure at someone else and take responsibility for first homebuyers in NSW who are struggling to get onto the property ladder.
It is time for Mr Baird and his government to make the tough decision to stop reaping the rewards of a failure to review stamp duty that is filling government coffers at record rates and bring it back to levels that were intended. 
Currently upwards of 25 percent of the cost of the purchase price of a new residential property goes on local, state and federal taxes, including GST. This is what is impeding turnover of property in NSW. It is time to look after the best interests of the people of this state.
Malcolm Gunning is the immediate past president of the Real Estate Institute of NSW and can be contacted <a href="https://www.gunningre.com.au" target="_blank">here</a>.
</div>
</div>
</div></body></html>

mick.cee-iDmgDDAmu8

Baird should butt out of federal taxation debate: Malcolm Gunning

<html><body>
An absolutely wild $8.63 billion in stamp duty and land transfer duty receipts was raised over the year to September for the NSW Government, according for the Office of State Revenue (OSR). 
This is a totally unprecedented windfall for any state or territory in Australia.
Note how annual stamp duty receipts (red line) have remained above $8.6 billion even in the face of lower volumes (dotted blue line) this year.
Simply, this is due to higher dwelling prices in Sydney. 
<a href="/images/2016/12/NSW.jpg" target="_blank">Click to enlarge</a>
<h3 class="post-title entry-title"><img src="/images/2016/12/NSW.jpg" alt=""></h3>
<div id="post-body-5759172691898837383" class="post-body entry-content">
 <div> </div>
<div>NSW's budget surged into a massive $4.7 billion surplus in 2015-16.</div>
<div> </div>
<div>This result was miles ahead of forecasts and leaves the state Government with net debt of less than zero.</div>
<div> </div>
<div>The state government is now in a cash positive position for the first time ever.  </div>
<div> </div>
<div>To complete the virtuous circle, billions of these funds need to be rolled into urgently required infrastructure projects, not least to plug the hole that will be left by declining housing construction from 2018 forth. </div>
<div> </div>
<div>With commodity prices recovering, financial markets have priced in a change in the outlook, with Australia's 10 year government bond yield now sitting back at 2.37 percent, having slumped quite sharply since May. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
</div>
</div>
</body></html>

pwargent-M4siyDbqQY

Stamped out NSW duties

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
Homeowners are electing to undertake renovations rather than sell their properties in an attempt to avoid stamp duty.
The number of property transactions had hit a four year low for the month of October 2016 according to data from the NSW Office of State Revenue. 
The number of Land Related Transactions transactions in October 2016 was 17,312, almost 12 percent less than the same period last year and at levels last seen in 2012. 
There were 55,745 transactions for the first 3 months of the 2016/2017 financial year down 7 percent on 2015/2016. The fall in transactions saw a decline in government revenue of more than 4 percent to $2.0643 billion. 
Latest building approval data from the ABS highlights what we had been suspecting for some time, homeowners are electing to renovate and add value to their properties rather than throwing money away though stamp duty associated with purchasing a new home. 
It is time for the NSW government to recognise this trend and review stamp duty levels. It is totally unacceptable that the government has allowed stamp duty levels to remain unchanged for 30 years. 
A review of stamp duty rates would result in more transactions and would benefit not only residents of NSW but would act to increase revenues that are currently in decline.
John Cunningham is president, REINSW and can be contacted <a href="https://www.reinsw.com.au/imis15_Prod/web" target="_blank">here</a>. 
</div>
</div>
</div></body></html>

Stamp duty hampers property transactions: REINSW

<html><body>
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
Minister Dominic Perrottet’s proposal to replace the transaction tax of stamp duty with a broad based land tax will help housing affordability. 
The Urban Taskforce has previously advocated for the replacement of stamp duty with a land tax and it is good to see the NSW Finance Minister raising the potential for this to occur.
Adding around $40,000 to the cost of buying a home discourages sales and increases the cost of housing.
Clearly state governments have come to rely on stamp duty income with NSW expecting $8.7 billion this year. The stamp duty will provide more funds in boom times and this will diminish as the market slows down. A land tax however will give consistent income that grows with the value of land.
Land tax, especially if it is distributed across all land, is a good way for governments to capture value from the uplift in land value through the impact of new infrastructure like a metro rail line.
Stamp duty is also contributing to an even bigger issue by discouraging owners of large homes to downsize to a smaller home. NSW Planning Minister, Rob Stokes, has raised the issue of the large number of unused bedrooms in large houses occupied by one or two older people. The removal of stamp duty would be an incentive for these people to downsize leaving the larger home for a family.
Housing Affordability is clearly a big issue across Sydney and the Urban Taskforce has recently proposed an approach that could yield 4,000 new affordable rental homes a year by modifying the NSW Affordable Rental Housing SEPP. We also support a speeding up of the planning system to boost supply and the removal of stamp duty. These three measures, using the Affordable Rental Housing SEPP, speeding up the planning system and replacing stamp duty would go a long way to helping with housing affordability in Sydney.
Recent demographic data from the NSW Department of Planning has shown that the population is increasing faster than expected. This means Sydney must average 37,000 new homes a year but in the current boom times this should be around 40,000 homes. Last financial year only 30,000 homes were built which is 10,000 below what is needed. The Urban Taskforce proposal to allow housing projects to add 20 percent more area for affordable homes would also boost supply in Sydney by around 4,000 a year.
</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
The Urban Taskforce is keen to work with all levels of government to find ways to help with housing affordability. As the major providers of new housing stock it is the developers who must be incentivised to provide the thousands of affordable homes Sydney desperately needs.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au" target="_blank">here</a>.
</div>
</div>
</div>
</body></html>

Replacing stamp duty with land tax will help housing affordability

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
The NSW government is facing a budget shortfall with land related transactions and total stamp duty collected below current budget forecasts for the first three months of the 2016- 2017 financial year, according to the Real Estate Institute of New South Wales. 
Data from the NSW Office State Review shows that for July, August and September 2016 both the number of land related transactions and the total stamp duty collected from those transactions is less than for that period last financial year. 
The NSW Government’s failure to address stamp duty bracket creep is beginning to hit them in the hip pocket. It's time to review and amend the out-dated stamp duty brackets that are inhibiting people from buying and selling property in NSW. 
There were 60,034 land related transactions in the first three months of the 2015-2016 financial year and this financial year there have been only 54,582. Last month, there were 17,988 transactions compared to 20,447 in 2015, some 12 per cent less. 
Approximately $2.157 billion in transfer duty was collected from land transfer transactions in the first 3 months of 2015. This financial year some $2.019 billion or $138 million less has been collected. The total Budget for 2016-17 for “All” transfer duty is $8.777 billion and at the current rate the NSW is facing a budget shortfall.
If not for the continued value growth the loss of budgeted revenue could be far greater. It's on a slippery slope unless government can find ways to generate more activity.
It is a disgrace that stamp duty bracket creep has not been reviewed for the past 30 years and Government's failure to address this issue is unconscionable and the market is now punishing them for it.
John Cunningham is president, REINSW, and can be contacted <a href="https://www.reinsw.com.au/imis15_Prod/web" target="_blank">here</a>.
</div>
</div>
</div></body></html>

NSW land, property transactions fall: REINSW

<html><body>
As many predicted some time ago, the newly created investment market, where we have seen approvals for high-rise apartments hit levels never seen before, will now see a massive correction.
In December 2008, the rules for off-the-plan apartments had a significant change when the ratio for foreign investors was moved from 50 per cent to 100 per cent. Developers could not believe their luck, as this decision created new rivers of gold, albeit an eight year run.
The governments then got involved by increasing stamp duty for foreign buyers, the Chinese government shut down the facilities permitting vast amounts of monies to be withdrawn from China and the major Australian banks stopped lending to foreign buyers. When combined, this has created the perfect property storm although the gamble of relying on foreign buyers acquiring the majority of these new apartments was always fraught with danger.
What we will see in 2017 is thousands and thousands of apartments off-the-plan coming back onto the market and the big question that remains unanswered is; what will be the percentage drop from the original contract prices? It has already been mentioned that analysis of every new development in Australia that settlement defaults will be between $1 billion and $1.5 billion every month over the next twelve month window.
 
A saving grace will be that the existing housing market will continue to go on-wards and upwards simply because fewer and fewer households are selling due to the exorbitant selling costs – namely stamp duty. If you look at the approximate 700 hundred suburbs that make up Sydney – it would be fair to suggest that at least 70 per cent of these suburbs are not creating any new houses for consumption.
The NSW government has gone down the track of high density with next to no new infrastructure to absorb this construction so in many areas our roads will become gridlocked.
At some stage an independent body will commission a report to look at all the bushland within Sydney to then ascertain how many tens of thousands of residential building blocks can be created to ease the demand of all those wanting to live in Sydney.
We need to bear in mind that the population within Sydney will hit 5 million in a matter of months and our population growth is years ahead of initial projections. Building tens of thousands of apartments does not in any way, shape or form ease the demand for established houses.
Of course, there is always a few who throw in that recession word and don’t forget that a few some years ago suggested that 2016 would see Australia fall into a long overdue recession. They would have been somewhat aggrieved when last quarter Australia posted 25 years of economic growth.
Many property forecasters were quick to say, at or about this time last year, that the Sydney property market was easing (which it did) and that this was the start of a price correction. As a few of us pointed out this was more the case of buyer fatigue (which it was) with 2016 posting greater price growth than 2015. Whichever way you want to look at this the heart of the problem is that demand for established housing far exceeds supply.
A significant correction in the new apartment market will have next to no effect on the established housing markets because they are two different buyers. Secondly, the vast majority of the new apartment investor markets are foreign buyers so if they default there is absolutely no knock on effect into the established housing markets.
If anything, we will see the Australian buyers cherry-pick this market, given the cash rate will go lower and then, in turn, will chase returns. The family home is at record highs so via negative gearing households will be mopping up the newly created apartment markets at much lower entry levels with so many apartments expected to default.
Some will be saying what could possibly go wrong following Australia’s unprecedented 25 years of economic growth? Wages have fallen from 3.5 per cent growth in 2012 to 2 per cent in 2016. A positive sign is that population growth in 2012 was 1.8 per cent and in 2016 it dropped to 1.3 per cent. Household income growth and consumer spending are in decline so those economy drivers will be closely monitored in the September quarter of 2016.
Whilst some are saying retirees are doing it tough, we need to keep in mind that their homes are at presently at the highest value ever so many are taking advantage of that by taking out reverse mortgages – otherwise known as spending the kid’s inheritance (SKI).
The major problem with Sydney house prices is that planning by state governments, at best, has been appalling. Even today there is no plan – rather, approve thousands and thousands of new apartments, sell them offshore and bank the stamp duty and land taxes.
So next time you are caught in traffic, just think, how is Sydney going to cope with all these thousands of new apartments under construction?
<h4>MOSMAN – 2088</h4>
<ul><ul>
<li>Number of houses on the market this time last year – 52</li>
<li>Number of houses on the market last week – 52</li>
<li>Number of houses on the market this week – 47</li>
<li>Number of apartments on the market this time last year – 51</li>
<li>Number of apartments on the market last week – 34</li>
<li>Number of apartments on the market this week – 32</li>
</ul></ul>
<h4>CREMORNE – 2090</h4>
<ul><ul>
<li>Number of houses on the market this time last year – 7</li>
<li>Number of houses on the market last week – 9</li>
<li>Number of houses on the market this week – 9</li>
<li>Number of apartments on the market this time last year – 22</li>
<li>Number of apartments on the market last week – 12</li>
<li>Number of apartments on the market this week – 14</li>
</ul></ul>
<h4>NEUTRAL BAY – 2089</h4>
<ul><ul>
<li>Number of houses on the market this time last year – 3</li>
<li>Number of houses on the market last week – 11</li>
<li>Number of houses on the market this week – 4</li>
<li>Number of apartments on the market this time last year – 29</li>
<li>Number of apartments on the market last week – 21</li>
<li>Number of apartments on the market this week – 19</li>
</ul></ul>
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
</body></html>

robertsimeon-hRNTwJyXkQ

Some property markets are correcting – other markets booming: Robert Simeon

<html><body>
GUEST OBSERVER
Most Australians believe the best way governments can assist the property market is to stop overburdening homebuyers with the crippling costs of stamp duty.
A poll iBuyNew which asked ‘What would be the best way for government to assist the property market?’ found 55 percent of respondents wanted to cut stamp duty.
Thirty percent of participants in the online survey suggested increasing first home buyer grants would be most effective, while 15 percent called for negative gearing to be scrapped.
Most governments remain over-reliant on stamp duty. 
State governments still have an unhealthy dependence on stamp duty which is just a drag on the economy and a handbrake on homebuyers.
If governments are not prepared to abolish stamp duty they should at least consider reductions or more concessions for certain buyers.
Greedy state governments had also been behaving badly by slugging foreign investors with excessive new surcharges and tax increases.
Foreigners buying property in Australia should be paying some tax but the measures that were recently announced by the NSW, Victorian and Queensland governments were over the top.
iBuyNew survey results:
What would be the best way for government to assist the property market?
Cut Stamp Duty                                             55 percent
Increase first home owner grants                     30 percent
Abolish negative gearing                                 15 percent
Mark Mendel is chief executive officer, iBuyNew and can be contacted <a href="https://www.ibuynew.com.au" target="_blank">here</a>.
</body></html>

State governments have an unhealthy dependence on stamp duty: Mark Mendel

<html><body>
When you buy or acquire a property in Victoria, you must pay land transfer duty (otherwise known as stamp duty) unless an exemption applies.
If you are a foreign purchaser and you acquire residential property, you must pay additional duty of 3 percent on the dutiable value of your share of the property (prior to the application of any concessions). This is, generally, the price you pay for the property/land. This additional duty applies to contracts, transactions, agreements and arrangements entered into on or after 1 July 2015.
For example, you will not pay the additional duty if you entered into a contract to purchase residential property on 30 June 2015 that has a settlement date of 30 September 2015. 
Where you have entered into a contract to purchase residential property before 1 July 2015 but nominate a foreign purchaser to take a transfer right of the property on or after 1 July 2015, additional duty may apply to the transfer.
The Victorian Government announced in its 2016-17 Budget that the rate of this additional duty will increase from 3 per cent to 7 per cent for contracts, transactions, agreements and arrangements entered into on or after 1 July 2016. 
Received a letter from us?
If you buy or acquire any land in Victoria, you must complete and lodge a Form 62 Purchaser Statement even if you believe you are not a foreign purchaser.
Please read our foreign purchaser frequently asked questions for more information. 
<h2>When does additional duty apply?</h2>
The additional duty applies to any arrangement or transaction that involves the transfer of interest in residential property. These include:
<ul>
<li>Buying a residential property at, for example, auction or by private sale,</li>
<li>Being given a residential property as a gift,</li>
<li>Certain leasing arrangements,</li>
<li>Transfers of interests in a deceased estate</li>
</ul>
The duty applies even if you only acquire part of, or a part interest, in the property. It also applies to relevant acquisitions in a landholder that holds residential property.
Where a foreign purchaser is exempt from paying land transfer or landholder duty, that purchaser will also be exempt from paying additional duty. Foreign purchasers are not entitled to a duty concession or a concessional rate of duty in respect of the additional duty payable.
Example A: Exemption applying in respect of additional duty
In his last will and testament, Joe has bequeathed all his assets, including two properties in Victoria, to his sister Joan, who is a foreign natural person.
The transfer of the two properties to Joan pursuant to Joe’s will is exempt from land transfer duty. Joan will also be exempt from paying additional duty.
Example B: Duty concession not applying when additional duty is payable
Kate, a foreign natural person, is transferred residential property bought off-the-plan for $500,000 which she intends to occupy as her principal place of residence (PPR). Kate is eligible for the PPR and the off-the-plan concession on the land transfer duty payable.
Additional duty is payable even though a concession may apply. Kate will be liable for the additional duty calculated at the rate of 3 per cent on the dutiable value of the property of $500,000.
<h3>Nominations and sub-sale events</h3>
Additional duty will apply where a foreign purchaser is nominated to take a transfer of residential property and that nomination is executed on or after 1 July 2015 and the nomination triggers a sub-sale event. This is the case even if the sale contract was entered into before 1 July 2015.  
Where a person is nominated to take a transfer under an off-the-plan contract this arrangement will trigger a sub-sale event (as there has been land development). In this situation land transfer duty is, generally, only charged on the transfer to the nominated person. Therefore, where a foreign purchaser is nominated to take a transfer of residential property under an off-the-plan contract and that nomination occurs on or after 1 July 2015, additional duty will apply.  
Where a nomination does not trigger a sub-sale event (i.e. no additional consideration and no land development) the transaction will be considered to have been entered into on the date of the contract and not the date of the nomination. In this case, additional duty will not apply in respect of a nomination made in respect of a contract entered into before 1 July 2015.
Complete a purchaser statement
<h2>Calculating additional duty</h2>
The additional duty is calculated at the rate of 3 per cent the dutiable value of your share of the residential property. This is, generally, the price you pay for the property/land. 
You can calculate the additional duty using these three steps:
<ol>
<li>Calculate the land transfer duty in the usual way, applying any relevant concessions</li>
<li>Calculate the additional duty at 3 per cent of the dutiable value of the property (prior to the application of any concession)</li>
<li>Add the land transfer duty amount in step 1 to the additional duty amount in step 2 to determine the total duty amount payable for the transfer
</li>
</ol>
When you make a relevant acquisition in a landholder, duty is charged on the unencumbered value of the total landholdings of the landholder. If you make a relevant acquisition as a foreign purchaser, the duty surcharge will only apply to the interest you acquired in the landholder proportional to the landholder’s landholdings which comprise residential property.
<h2>Residential property</h2>
Residential property is:
<ul>
<li>Land that has a building on it that is designed and constructed solely or primarily for residential purposes and may be lawfully used as a place of residence,</li>
<li>Land that is vacant but will have residential premises built on it</li>
</ul>
Importantly, if you are a foreign purchaser who acquires property that is not residential property, but intend to make, or later decide to turn it into residential property, the additional duty may still apply. In this case, you must advise us of your intention in writing.
<h2>Dual-purpose property(s)</h2>
Sometimes, a property can be used for both residential and commercial purposes.
If a property is primarily used for residential purposes, then it is a residential property. If so, the additional duty is applied to the foreign purchaser’s share of the dutiable value of the whole property, including the part that is not used for residential purposes.
<h2>Foreign purchasers</h2>
You will be a foreign purchaser if you are a foreign natural person, a foreign corporation or a trustee of a foreign trust.
<h3>Foreign natural persons</h3>
You are a foreign purchaser if you are not:
<ul>
<li>A citizen or permanent resident of Australia,</li>
<li>Or a New Zealand citizen with a Special Category Visa (Subclass 444)</li>
</ul>
<h3>Foreign corporations</h3>
A foreign corporation includes:
<ul>
<li>Corporations incorporated outside Australia, and</li>
<li>Corporations incorporated in Australia if a foreign natural person, another foreign corporation or trustee of a foreign trust has a controlling interest in those corporations </li>
</ul>
<h3>Foreign trusts</h3>
A foreign trust is a trust where a foreign natural person, foreign corporation or in the trustee of another foreign trust, has a substantial interest in the trust estate of that trust.
<h2>Controlling interest in a corporation</h2>
A foreign natural person, foreign corporation or the trustee of a foreign trust has a controlling interest in a corporation (either alone or with an associated person) when that person or entity:
<ul>
<li>Is in a position to control more than 50 per cent of the votes (voting power or potential voting power),</li>
<li>Has more than 50 per cent of the issued shares in that corporation, or</li>
<li>Has (in the Commissioner's opinion) the ability to influence the outcome of the decisions about the corporation’s financial and operating policies, taking into account certain factors (the practical influence a person can exert in addition to any rights the person can enforce, any practice or behaviour affecting the corporation’s financial or operating policies, even if that practice or pattern of behaviour involves the breach of an agreement or breach of trust)</li>
</ul>
An "associated person" can be any of the following:
<ul>
<li>A relative of the foreign purchaser,</li>
<li>A partner in a partnership,</li>
<li>Another corporation with the same majority shareholder as the foreign corporation, or</li>
<li>A trustee of the trust in which the foreign purchaser is a beneficiary</li>
</ul>
Note: the associated person does not have to be a foreign natural person, foreign corporation or the trustee of a foreign trust.
<h3>Voting power and potential voting power</h3>
The voting power in a corporation refers to the maximum number of votes that might be cast at a general meeting of the corporation.
Potential voting power in a corporation refers to the voting power based on the assumption that the votes might be cast at a general meeting of the corporation including each vote that:
<ol start="1">
<li>Might exist in the future because of the exercise of a right (whether actual, prospective or contingent), and</li>
<li>If it came into existence, might be cast at a general meeting of the corporation</li>
</ol>
<h4 class="rteindent1">Example 1: The transferee corporation is a foreign purchaser</h4>
XYZ Pty Ltd purchases land in Victoria. XYZ Pty Ltd is a corporation incorporated in Australia. Its shareholders are A Pty Ltd as to 45 per cent and B Pty Ltd as to 55 per cent.
B Pty Ltd has two shareholders, both of whom are foreign natural persons. As a result, B Pty Ltd is a foreign corporation who has a controlling interest in XYZ Pty Ltd which makes XYZ Pty Ltd a foreign corporation.
<h4 class="rteindent1">Example 2: The transferee is a foreign purchaser because there is a foreign natural person corporation or trust in the transferee’s corporate structure</h4>
XYZ Pty Ltd purchases residential property in Victoria. XYZ Pty Ltd is a corporation incorporated in Australia. XYZ Pty Ltd has two shareholders, A Pty Ltd as to 45 per cent and B Pty Ltd as to 55 per cent. B Pty Ltd has two shareholders, Danny and Elizabeth. Danny holds an Australian permanent visa and has 35 per cent of the shares in B Pty Ltd. Elizabeth is a foreign natural person who has 65 per cent of the shares in B Pty Ltd.
Elizabeth has an interest in more than 50 per cent of the issued shares in B Pty Ltd and so has a controlling interest in B Pty Ltd. B Pty Ltd holds more than 50 per cent of the issued shares, and therefore a controlling interest, in XYZ Pty Ltd. This makes XYZ Pty Ltd a foreign corporation which means that XYZ Pty  Ltd will be liable for the additional duty payable by foreign purchasers of residential property.
<h2>Substantial interests in a trust</h2>
A foreign natural person, foreign corporation or foreign trust has a substantial interest in a trust (either alone, or with an associated person) when that person or entity:
<ul>
<li>Has a beneficial interest of more than 50 per cent of the capital of the estate of the foreign trust, or</li>
<li>Has (in the Commissioner's opinion) the capacity to determine or influence the outcome of the decisions about the administration and conduct of the trust, taking into account certain factors (such as the practical influence the person can exert in addition to any rights the person can enforce, and any practice or behaviour affecting the trustee’s administration and conduct of the trust, even if that practice or pattern of behaviour involves the breach of an agreement or breach of trust)</li>
</ul>
For discretionary trusts, a person or member of a class of persons, is taken to have a beneficial interest in the maximum percentage of the capital of the foreign trust estate that the trustee of the discretionary trust is empowered to distribute to that person.
<h4 class="rteindent1">Example 3: The transferee trust is a foreign purchaser</h4>
ABC Pty Ltd acts as trustee for the ABC Unit Trust which has two unitholders, Joe and Elena. Joe is an Australian citizen who holds 40 per cent of the units in the unit trust. Elena is a foreign natural person who holds 60 per cent of the units in the unit trust.
Elena has a substantial interest in the ABC Unit Trust, which makes it a foreign trust.
<h4 class="rteindent1">Example 4: The transferee is a foreign purchaser because there is a foreign natural person, corporation or trust in the transferee’s trust structure</h4>
ABC Pty Ltd as trustee of the ABC Unit Trust buys residential property on its behalf. The ABC Unit Trust has two unitholders, Steve and Z Pty Ltd. Steve holds an Australian permanent visa and 40 per cent of the units in the unit trust, whilst Z Pty Ltd is a corporation incorporated in Australia which holds 60 per cent of the units in the unit trust.
The sole shareholder of Z Pty Ltd is Poli, a foreign natural person. Poli has an interest in more than 50 per cent of the issued shares in Z Pty Ltd and so has a controlling interest in Z Pty Ltd. Z Pty Ltd holds an interest in more than 50 per cent of the capital of the trust estate of the ABC Unit Trust and therefore has a substantial interest in the unit trust. This makes the ABC Unit Trust a foreign trust which means ABC Pty Ltd on behalf of the ABC Unit Trust will be liable for the additional duty payable by foreign purchasers of residential property.
<h2>Application for exemption </h2>
Corporations and trusts may, in some circumstances, be eligible for an exemption from the additional duty. The Treasurer has gazetted guidelines outlining the basis on which exemption decisions will be made. 
The exemption is intended to apply to those corporations or entities whose activities in the development or re-development of property adds to the supply of housing stock in Victoria. The effect of an exemption is that the foreign corporation or foreign trust in which the person has a controlling or substantial interest, will not have to pay the additional duty.
The Treasurer has a delegable power to determine applications for this exemption and has delegated the power to make this exemption decision to the Commissioner.  While this delegation is in force, the Treasurer no longer has the power to make exemption decisions. All applications for exemptions must be directed to the SRO.
If you wish to apply for an exemption, please submit an application before the completion of your transaction.
<h2>Notification requirements</h2>
If you are a purchaser or transferee of property in Victoria and you enter into a contract, transaction, agreement or arrangement on or after 1 July 2015, you must complete and lodge a purchaser statement with your other land transfer documents.
Failure to accurately identify as a foreign purchaser, or that residential property is being acquired, will attract penalties under the Taxation Administration Act 1997 (Vic) as well as the additional 3 percent duty.
For more information, <a href="https://www.sro.vic.gov.au" target="_blank">click here</a>.
 
</body></html>

Stamp Duty

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Stamp Duty

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News