What happens if a registered proprietor has died?August 1, 2023
When do I need a property valuation?October 1, 2023
If you’ve not an Australian or New Zealand citizen, and you don’t hold a permanent visa allowing you to be in Australia, then you are regarded by the Duties Act as a “foreign natural person”.
When foreign natural persons, foreign corporations or foreign trusts buy land in Victoria, they must pay an additional 8% penalty stamp duty on their property purchase (in addition to the normally assessable stamp duty).
Importantly, when New Zealand citizens are out of Australia (even temporarily), they revert to become foreign natural persons until they re-enter Australia. Thus, to avoid becoming liable for the additional 8% penalty stamp duty, New Zealand citizens should make sure that they are in Australia on the date of their property settlement.
If you are a foreign natural person but also the spouse or domestic partner of someone who is not a foreign natural person (i.e. they are an Australian or New Zealand citizen, or they hold a permanent visa allowing them to be in Australia), then provided that you (and your spouse or domestic partner) buy property jointly and you occupy this property as your principal place of residence for at least 12 months, commencing within 12 months of the date of settlement, then section 69AJ of the Duties Act exempts you from the additional 8% penalty stamp duty.