As at 1 July 2025, a foreign purchaser buys a new $750,000 apartment in Melbourne. How much foreign purchaser additional duty is payable, on top of standard land transfer duty?
Correct Answer
D) $60,000
As at 1 July 2025, Victoria's foreign purchaser additional duty is 8% of the dutiable value of residential property, on top of standard land transfer duty: $750,000 × 8% = $60,000. The stem specifies a new apartment because, from 1 April 2025 to 30 June 2029 (as extended in the 2026–27 Budget), foreign persons are generally barred from buying established dwellings.
Why This Is the Correct Answer
Victoria's foreign purchaser additional duty was 8% of the dutiable value as at 1 July 2025, so $750,000 × 8% = $60,000, payable in addition to standard land transfer duty.
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As at 1 July 2025, an eligible first-home buyer in Victoria buys a home to live in for $650,000. What land transfer duty relief applies?
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