FOREIGN buyers of residential property in WA will be hit with a 4 per cent surcharge on property taxes if Labor wins next month’s State election.

Mark McGowan will make the announcement at today’s official election campaign launch, saying the foreign buyers surcharge would boost government coffers by $21 million in its first year of introduction in 2019.

The surcharge will apply to foreigners only in transactions involving residential land. The surcharge would bring WA into line with Queensland (3 per cent), NSW (4 per cent) and Victoria (7 per cent).

It would mean an overseas buyer buying a home of $500,000 in Perth would pay $39,665 in stamp duty, compared with the $19,665 a West Australian would pay.

Mr McGowan is selling the plan as a new revenue stream for WA, as the State grapples with an expected net debt of $33 billion by June 30 this year and no recovery in GST revenues until 2019-20.

“This new revenue base will strengthen the State’s finances, without relying on West Australians,” Mr McGowan said.

“It’s time to make sure foreigners buying local residential property pay their fair share of tax.

“In other States, similar surcharges are helping fund key services and infrastructure and Western Australia should be no different.

“WA is an attractive location for foreigners to buy property, but it’s only fair that West Australians get something in return.”

Mr McGowan said in other States the measures did not adversely affect the property market.

He said the delayed introduction would allow the market to adjust “given the economic climate”.

“It’s a tough decision, but smart and responsible,” Mr McGowan said. “It will guarantee a new revenue source to flow to services that matter to West Australians.”

Labor says the surcharge would not apply to foreign buyers who were permanent residents.