❓ Hon Rick Mazza questions the Minister for Finance regarding the impact of the foreign buyers surcharge on apartment sales and revenue forecasts, citing concerns raised by developers. The Minister acknowledges revenue revisions and ongoing monitoring.
AnsweredQoN 491Legislative Council
QuestionView source ↗
FOREIGN BUYERS SURCHARGE
491. Hon
RICK MAZZA to the minister representing the Minister for Finance:
I refer to the 8 May 2019 article
in The West Australian headed ''Developers pan surcharge'',
in which it is said apartment developers are complaining that the seven per
cent surcharge for foreign property buyers has smashed off-the-plan sales,
putting new projects in jeopardy and damaging job creation.
(1) Can the
minister confirm data from urban planning design and research firm Urbis that
the sale of new apartments to foreign buyers fell from 120 in the December
quarter to just 14 in the March quarter?
(2) How much money has the foreign
buyers duty raised in the year to date?
(3) Is the government on track to
raise about $120 million over three and a half years to 2021–22?
(4) Is the government confident
with its expected revenue forecasts from the scheme?
491. Hon
RICK MAZZA to the minister representing the Minister for Finance:
I refer to the 8 May 2019 article
in The West Australian headed ''Developers pan surcharge'',
in which it is said apartment developers are complaining that the seven per
cent surcharge for foreign property buyers has smashed off-the-plan sales,
putting new projects in jeopardy and damaging job creation.
(1) Can the
minister confirm data from urban planning design and research firm Urbis that
the sale of new apartments to foreign buyers fell from 120 in the December
quarter to just 14 in the March quarter?
(2) How much money has the foreign
buyers duty raised in the year to date?
(3) Is the government on track to
raise about $120 million over three and a half years to 2021–22?
(4) Is the government confident
with its expected revenue forecasts from the scheme?
AnswerView source ↗
I thank the honourable member for
some notice of the question. The Minister for Finance has provided the
following information.
(1) The
department does not hold data relating to the purchase of residential property
by a foreign person prior to 1 January 2019 and cannot verify the data in the
report.
(2) There has
been $4.3 million raised to 14 May 2019.
(3) The expected
revenue from the foreign buyers surcharge was revised down significantly in the
2018–19 midyear review in light of updated information on foreign buyer
activity from the Foreign Investment Review Board. Expected growth in revenue
from the surcharge has also been amended to reflect the outlook for the
residential property market.
(4) Collections
from this revenue source, which commenced only on 1 January 2019, are being
monitored, and forecasts will be reviewed, as with revenue from all sources, in
the 2019–20 midyear review.
some notice of the question. The Minister for Finance has provided the
following information.
(1) The
department does not hold data relating to the purchase of residential property
by a foreign person prior to 1 January 2019 and cannot verify the data in the
report.
(2) There has
been $4.3 million raised to 14 May 2019.
(3) The expected
revenue from the foreign buyers surcharge was revised down significantly in the
2018–19 midyear review in light of updated information on foreign buyer
activity from the Foreign Investment Review Board. Expected growth in revenue
from the surcharge has also been amended to reflect the outlook for the
residential property market.
(4) Collections
from this revenue source, which commenced only on 1 January 2019, are being
monitored, and forecasts will be reviewed, as with revenue from all sources, in
the 2019–20 midyear review.
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