09:28
Two shock new taxes on foreigners buying property in Victoria have been described as a "king-hit" to the real estate industry that will deter international investment in the state, and discourage the construction of new homes.
The controversial state government-imposed charges will raise about $330 million over four years and apply to foreign nationals who purchase houses, apartments and vacant residential-zoned land in Victoria.
Property Council of Australia deputy executive director Asher Judah slammed the new fees, describing them as a "king hit" to the real estate industry.
Potential bidder at a Brunswick auction.
Potential bidder at a Brunswick auction. Photo: Arsineh Houspian
Non-residents buying property will be slugged the equivalent of 3 per cent of the purchase price. The surcharge will apply from July 1. Also, an absentee land tax of 0.5 per cent will be applied from 2016 to foreigners who do not occupy the new or existing dwelling they have purchased, which Treasurer Tim Pallas said would deter so-called land banking.
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