Victorian State Budget delivered yesterday by Treasurer Tim Pallas revealed stamp duty paid by foreign property investors will be increased from 7 to 8 per cent from July 1, 2019 bringing Victoria's rate into line with that of New South Wales.
Revenue forecasts from stamp duty have been revised down by $5.2 billion since last November, as the property market softens as a result of tighter lending.
Victoria had experienced the biggest 12-month decline in property prices in the state's history over the past year, Mr Pallas said.
The Treasurer also mentioned that Victorian property prices had fallen by about 10 per cent over the past year, while the volume of transactions had declined by about 15 per cent over the same period.
Broad expectations are that prices to continue to fall for at least 12 months, however the rate of decline should decelerate, and with an interest rate cut on the horizon and regulators easing lending restrictions, there were "green shoots" that pointed to a recovery. Thus the Budget has forecast steady growth in stamp duty revenue from 2020-21.
How much more taxes you should pay if you are foreign investor? Use our stamp duty calculator to find out. And as soon as the new rates come into effect, the calculator will updated.