The dutiable document or acquisition statement needs to be assessed by us for duty in the normal manner. Additional information is required to calculate the Foreign Investor Duty Surcharge (FIDS).
A direct acquisition occurs when land acquired will be registered as being owned by the foreign person. These are assessed under Chapter 2 of the Duties Act 2001.
For direct acquisitions, the information required to calculate FIDS will include:
• what type/s of land are being acquired;
• the value of any residential and/or primary production property being acquired; and
• the percentage of the land being acquired by a foreign person/s.
An indirect acquisition occurs if a significant interest in a land owning company or trust is acquired by a foreign person, or where a land use entitlement is acquired by way of allotment of shares or issue of units. These are assessed under Chapter 3 of the Duties Act 2001.
For landholder acquisitions, the information required to calculate FIDS will include:
• the type/s of land held by the landholder;
• the value of any residential and/or primary production property held by the landholder as at the date of any acquisition in the landholder made by the foreign person; and
• the percentage of the landholder acquired by a foreign person/s.
For land use entitlements, the information required to calculate FIDS will include:
• the type/s of land related to the land use entitlement.
Acquisitions occurring before 1 July 2018
FIDS is not chargeable if the acquisition (whether directly or indirectly) occurred before 1 July 2018. If a contract was entered into before 1 July 2018 but settled after 1 July 2018, FIDS applies.
Land type changes
A foreign person must notify the Commissioner of State Revenue within 14 days if land becomes residential property or primary production property within 3 years of its acquisition. This includes where primary production property becomes residential property.
The transaction will be reassessed as if at the time of the acquisition the land was residential property or primary production property (whichever is relevant). The additional FIDS is payable 90 days from the date of the land type change.
The land type change rules do not apply to landholder transactions under Chapter 3.