Beware of foreign person stamp duty surcharge

Since 1 July 2017 a surcharge duty of up to 8% of the purchase price will be imposed on persons acquiring real property in New South Wales (similar legislation also applies in other states) if not an Australian citizen or permanent resident.
For non-Australian citizens care needs to be taken as to the nature of your visa to ensure it meets the criteria of being “permanent”.
Care also needs to be taken by couples in a marriage or domestic relationship where one does not have a permanent visa. Whilst they may be exempt from requiring approval from the Foreign Investment Review Board when purchasing with their partner as joint tenants, there is no equivalent exemption in relation to the surcharge duty.
Any persons that may be affected by the surcharge duty are urged to seek advice before entering into contracts to understand the implications and look at options that may avoid the additional duty.