Lynne Cullen

[Lynne cullen]

We are going to Australia on a aged parent visa 804, could I please ask what tax implications there are when purchasing a property out there?

thanks

[Marisawright]

2 hours ago, Lynne cullen said:

We are going to Australia on a aged parent visa 804, could I please ask what tax implications there are when purchasing a property out there?

Do you mean you already have the 804 visa, or are you planning to travel to Australia and then apply for the 804 while you are onshore?

If you already hold the 804 visa, then there are no tax implications.

If you intend to travel to Australia and then apply for the 804 visa, you will be on a bridging visa, probably for the rest of your life. That means you are a temporary resident, and not entitled to any of the rights and benefits of a permanent resident. 

If you buy property, you will be classed as a foreign investor.  You will have to apply to FIRB (for a fee) for permission to buy the property.  Then you will be charged a surcharge on the purchase price (on a $500,000 property it's about $40,000 from memory).  

[Steve Elliott]

As Marisa said, if an 804 has been granted then no additional cost. If the 804  has not yet been granted, you will be on a temporary visa and might be in for a big shock. The RIRB fee for buying an established house worth say $800,000 would be $43,200. The killer is the additional State and Territory levied additional stamp duty. For Queensland that's an extra 7% or $56,000, thus taking the additional buying costs to just under $100,000 for an established home. Bear in mind stamp duty is levied at a state level so you would need to apply the rates which apply in the state you are intending to purchase. 

[Ferrets]

There is the cost of the FIRB for property, but any stamp duty is the same if you are a permanent resident.

However, dependant on your circumstances, the limbo might work out.  If you still have significant residual savings after the purchase of the property in Austalia, then you might be able to offshore them from the UK, as you will only be a temporary resident of Australia and non tax resident in the UK once you move.

It's definately worth professional advice if you fall into that category!

[Ken]

14 hours ago, Ferrets said:

There is the cost of the FIRB for property, but any stamp duty is the same if you are a permanent resident.

However, dependant on your circumstances, the limbo might work out.  If you still have significant residual savings after the purchase of the property in Austalia, then you might be able to offshore them from the UK, as you will only be a temporary resident of Australia and non tax resident in the UK once you move.

It's definately worth professional advice if you fall into that category!

Stamp duty is a state tax. In some states it is still the same for foreign investors as it is for permanent residents but not in all. I think Victoria was the first state to charge extra to foreign investors, but other states have followed suit.

[Ausvisitor]

On 18/06/2024 at 12:47, Ken said:

Stamp duty is a state tax. In some states it is still the same for foreign investors as it is for permanent residents but not in all. I think Victoria was the first state to charge extra to foreign investors, but other states have followed suit.

For instance

VIC charges 8% more stamp duty on foreign buyers (so 8% more of the full value as opposed to what an Australia/pr pays)

So if you buy a million dollar property as a resident/citizen the stamp duty is $55k. As a foreign Investor it is $135k + the FIRB (which is around $80k if you buy now as they just massively hiked the FIRB rates)

 

[BendigoBoy]

Still ridiculously cheap compared to the 60% additional buyers stamp duty that Singapore levies...