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Parliamentary Questions

Question Without Notice No. 792 asked in the Legislative Council on 13 September 2018 by Hon Peter Collier

Parliament: 40 Session: 1

Answered on 13 September 2018

FOREIGN BUYERS SURCHARGE

792. Hon PETER COLLIER to the minister representing the Treasurer:

I refer to the foreign buyer exchange and the fact that Landgate and the Foreign Investment Review Board do not collect data on the number of properties that will attract the foreign buyers surcharge.

(1) On what basis did Treasury arrive at the estimate that 1 000 properties will attract the surcharge?

(2) How did Treasury forecast the total revenue for the foreign buyer surcharge?

Hon STEPHEN DAWSON replied:

I thank the Leader of the Opposition for some notice of the question. The Leader of the Opposition said in his question, ''I refer to the foreign buyer exchange''; I think he means surcharge.

Hon Peter Collier: Surcharge; sorry. Yes.

Hon STEPHEN DAWSON: Okay. In light of that —

(1) The Department of Treasury estimate was based on Foreign Investment Review Board approvals data, which was adjusted in accordance with assumptions on foreign investment in residential real estate used in the commonwealth government's House of Representatives Standing Committee on Economics' report. It was also informed through discussions with other state treasuries.

(2) This information was applied to the transfer duty data for the same year to provide an estimate of the portion and value of properties these transactions represent. The rate of seven per cent was applied to this estimate to derive estimated revenue from the surcharge.