Stamp Duty & Foreign Buyer Surcharges

Stamp Duty & Foreign Buyer Surcharges

When purchasing property in Australia, foreign investors face not only the standard stamp duty like local buyers, but also additional surcharges that vary by state or territory. These can significantly increase the cost of acquisition — often by 7–8% or more — so it’s essential to understand what applies to your situation.

What is Stamp Duty?

Stamp duty (also called transfer duty) is a state-based tax paid when property ownership is transferred. It’s calculated based on the purchase price (or market value, whichever is higher) and must usually be paid within 30 days of settlement.

The base stamp duty rates are:

• Tiered (e.g., higher for properties over certain thresholds)

• Different in each state or territory

• Sometimes discounted for first home buyers (but generally not available to foreign buyers)

What Is the Foreign Buyer Surcharge?

In addition to the standard stamp duty, foreign purchasers must also pay a Foreign Purchaser Duty Surcharge in many states. This surcharge is imposed to curb foreign speculation and increase housing affordability for locals.

It applies in addition to standard stamp duty and can range from 7% to 8% (or higher) of the property price, depending on the state.

 State-by-State Foreign Surcharge Rates (as of 2025)

State / Territory	Foreign Buyer Surcharge	Notes
NSW (New South Wales)	8% (rising to 9% from 2025)	Applies to residential property
VIC (Victoria)	8%	Applies to residential property
QLD (Queensland)	7%	Introduced in 2016
WA (Western Australia)	7%	Applies to residential land
SA (South Australia)	7%	Applies to residential land
TAS (Tasmania)	8%	Applies to residential land
ACT (Canberra)	0% – No foreign buyer surcharge	One of the few exceptions
NT (Northern Territory)	0% – No surcharge currently	Surcharge not yet introduced

Important: These surcharges apply to foreign individuals, foreign trusts, and foreign companies. Australian citizens and permanent residents are not subject to the surcharge, even if they live overseas.

Who is Considered a “Foreign Buyer”?

A person is considered a foreign person if they:

• Are not an Australian citizen

• Are not a permanent resident (unless exempt)

• Are a temporary visa holder (unless they meet certain exemptions)

• Are a foreign company or trust (where controlling interest is held by foreign persons)

This definition may vary slightly by state — and it affects whether the surcharge applies.

Are There Any Exemptions?

Yes — some categories of buyers may be fully or partially exempt from the surcharge:

1. New Zealand Citizens (holding a Special Category Visa – SCV subclass 444):

Exempt in most states, including NSW and VIC.

Treated similarly to Australian permanent residents.

2. Australian Permanent Residents:

Generally exempt, even if not currently living in Australia.

3. Temporary Visa Holders:

Usually subject to the surcharge, unless buying with a spouse who is an Australian citizen or PR.

Some states (e.g., NSW) may grant an exemption or refund if the foreign buyer becomes a permanent resident within a certain period.

4. Buying with an Australian Citizen Spouse:

If purchasing jointly with a citizen or PR, the citizen’s share is exempt.

You still pay surcharge on the foreign person’s portion, unless an exemption applies.