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Stamp Duty whilst on 804 Aged Parent Bridging Visa


Michael Johnson

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Hi there,

Desperate to seek some urgent advice, my inlaws are here in Brisbane & have been for 7 x weeks now, retirees from the UK in early 70's, they applied for Visa 804 aged parent visa whilst here in Oz and they have been granted the bridging visa, they sold their house in UK in November & looking to buy a property ( existing residence not a new build) fully understand the process with the FIRB and looks like there will be a fee of approx. $6k to be paid for FIRB Process however they are panicking now as they have put in an offer on a existing residence up at Bribie Island, QLD for $525k which looks like being accepted, they plan to reside in the residence themselves, BIG QUESTION PLEASE....... Will they be classed as foreign purchaser with regards to stamp duty  which attracts 7% additional duty surcharge I believe?  ( AFAD - Additional foreign Acquirer duty) if so based on the value of the property that could be near the $50k region just in stamp duty!!!

PLEASE IF ANYONE CAN HELP US WITH ANY INFO ON THIS THAT WOULD BE SO APPRECIATED, MAYBE A FEW OF YOU HAVE EXPERIENCED THE SAME SCENARIO AND CAN LET ME KNOW, IS THERE ANYWAY AROUND THIS IF THAT IS THE CASE? WOULD IT BE BETTER FOR HOUSE TO BE BROUGHT IN THE TWO DAUGHTERS NAMES WHOM ARE BOTH AUSTRALIAN CITIZENS?

Please comment if you can guide us, in laws having sleepless nights worrying about this!

Thanks in advance so much.

Kind regards

Michael

 

 

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This was taken from expat tax, Australian Taxation Service

What exactly is a foreign buyer?

Before we delve into what the recent stamp duty surcharge means for foreign purchases in Queensland, we should clearly define the term “foreign buyer”. Before you decide to purchase a property in Queensland, you must determine whether you are, in fact, a foreign buyer.

In regard to property acquisition, a foreign buyer is defined as: “an individual who is not ordinarily an Australian resident.” In accordance with this definition, a foreign person will only be considered an “ordinarily Australian resident” if the following conditions are met:

  • You have resided in Australia for at least 200 days of the last 12 months; and
  • Your time spent in Australia is (or was) not contingent upon any time-related limitation, such as those imposed by law.
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