Foreign property investors hit with stamp duty surcharge in New South Wales (NSW) state

Foreign property buyers will be slugged a 4 percent charge on stamp duty when purchasing residential real estate in New South Wales (NSW) state, the state government announced on Tuesday.

A 0.75 percent land tax surcharge will also be introduced for foreign buyers, with both changes taking affect in 2017.

The changes are expected to raise just over 1 billion Australian dollars (738 million U.S. dollars) over four years.

"These new measures will ensure NSW's property market continues to be an attractive destination for international investors while making sure that we are able to fund vital services into the future," NSW state treasurer Gladys Berejiklian said.

Foreign investors will be slugged 7 percent on residential stamp duty in Victoria state from July 1 as well as be hit with a 1.6 percent surcharge on some land tax.

"The Victorian experience has demonstrated that the measures have not had an adverse impact on the property market."

She also noted foreign investors will no longer be entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases of residential property.

The Queensland state government also announced recently it would put a 3 percent surcharge on foreign property investors. Endit