Foreign Buyer Stamp Duty Guide Australia

What Is the Foreign Buyer Stamp Duty Surcharge?

Foreign buyers purchasing residential property in Australia pay standard stamp duty plus an additional surcharge in most states and territories. This surcharge is calculated as a flat percentage of the property's dutiable value and is applied on top of the regular transfer duty that all buyers pay.

The surcharge exists to ensure that foreign investment in Australian residential property makes a fair contribution to state revenue. Rates currently range from 7% to 9% depending on the state, with the Northern Territory being the only jurisdiction that does not impose a surcharge.

Importantly, the foreign buyer surcharge is independent of any first home buyer concessions. In South Australia, for example, a first home buyer purchasing a new home may have their standard duty reduced to $0, but the 7% foreign buyer surcharge still applies in full. The surcharge is always calculated on the total dutiable value of the property, not on the duty amount.

Calculate your foreign buyer duty: NSW | VIC | QLD | WA | SA | TAS

Foreign Buyer Surcharge Rates by State

The table below shows the current foreign buyer stamp duty surcharge rates for each Australian state and territory, along with the surcharge amount on common property values. These figures represent the surcharge only — standard transfer duty is payable on top.

*ACT does not charge a stamp duty surcharge but charges a 0.75% annual land tax surcharge on the average unimproved value of the property.

Total Cost for Foreign Buyers

To understand the full impact of the foreign buyer surcharge, consider this worked example showing how standard duty and the surcharge combine.

Who Counts as a Foreign Buyer?

State revenue offices classify foreign buyers into three main categories. If you fall into any of these groups, the foreign purchaser surcharge will generally apply to your property purchase.

1. Foreign Individuals

A foreign individual is any person who is not an Australian citizen or permanent resident. This includes temporary visa holders such as those on student visas, 457/482 skilled worker visas, and working holiday visas. New Zealand citizens are treated differently in some jurisdictions — QLD explicitly exempts NZ citizens from the surcharge, but other states may still classify them as foreign buyers if they do not hold permanent residency.

2. Foreign Corporations

A foreign corporation is a company where foreign persons hold a controlling interest, usually defined as more than 50% of the shares or voting power. If a company purchasing residential property is controlled by foreign interests, the surcharge applies to the transaction.

3. Foreign Trusts

A foreign trust is one where a foreign person is a beneficiary or has the ability to control the trust. This includes discretionary trusts where the trustee has the power to distribute to foreign beneficiaries, even if no distribution has been made. The definition varies slightly between states, so it is important to check the specific rules in your jurisdiction.

FIRB Requirements

The Foreign Investment Review Board (FIRB) oversees foreign investment in Australian property. Foreign buyers generally need FIRB approval before purchasing residential property, and this requirement applies regardless of the property's value.

FIRB application fees are based on the property's purchase price. For properties valued up to $1 million, the application fee is approximately $14,100. Fees increase for higher-value properties and are subject to annual indexation. These fees are separate from and in addition to any stamp duty or surcharges.

It is important to note that FIRB approval is a separate requirement from stamp duty surcharges. Having FIRB approval does not exempt you from paying the foreign buyer surcharge, and paying the surcharge does not satisfy FIRB requirements. Both must be addressed independently.

State-by-State Foreign Buyer Rules

Each state and territory administers its own foreign buyer surcharge with different rates, exemptions, and rules. Below is a summary of how each jurisdiction treats foreign property purchases.

New South Wales (NSW)

NSW charges a 9% surcharge on all residential property purchased by foreign buyers. The surcharge was introduced in 2017 and applies to the total dutiable value of the property. There are no exemptions for temporary residents, and the surcharge is not reduced based on ownership share — if any buyer on the contract is a foreign person, the full surcharge applies.

Victoria (VIC)

Victoria imposes an 8% surcharge on residential property purchases by foreign buyers. The surcharge is applied proportionally based on the foreign ownership share, meaning that if an Australian citizen and a foreign buyer purchase jointly, only the foreign buyer's share attracts the surcharge. Off-the-plan concessions may still apply to reduce the standard duty component.

Queensland (QLD)

Queensland charges an 8% surcharge on residential land purchased by foreign buyers. Notably, New Zealand citizens are explicitly exempt from the surcharge in QLD, reflecting the close Trans-Tasman relationship. The surcharge applies to all other foreign buyers including temporary visa holders.

Western Australia (WA)

WA charges a 7% surcharge on residential property purchased by foreign buyers. The surcharge was introduced in 2019 and applies to the dutiable value of residential property transactions. It is one of the lower surcharge rates nationally.

South Australia (SA)

South Australia imposes a 7% surcharge on foreign buyer property purchases. An important distinction in SA is that the surcharge applies independently of first home buyer concessions. A first home buyer purchasing a new home can have their standard duty reduced to $0 but will still owe the full 7% foreign buyer surcharge on the property value.

Tasmania (TAS)

Tasmania charges a standard 8% surcharge on residential property purchased by foreign buyers. An additional 1.5% surcharge applies to primary production land. The surcharge is applied proportionally based on the foreign buyer's ownership share, similar to Victoria.

Northern Territory (NT)

The Northern Territory does not impose a foreign buyer stamp duty surcharge. Foreign buyers pay the same transfer duty rates as Australian citizens and permanent residents. This makes the NT the only Australian jurisdiction with no additional cost for foreign purchasers at the point of sale.

Australian Capital Territory (ACT)

The ACT does not charge a stamp duty surcharge on foreign buyers. Instead, foreign owners pay an additional 0.75% annual land tax surcharge on the average unimproved value of the property. This means the additional cost is spread over the period of ownership rather than being a one-off payment at purchase.

Does FHB Concession Reduce the Surcharge?

This is one of the most common points of confusion for foreign buyers who are also first home buyers. The short answer is no — in most states, the foreign buyer surcharge is calculated on the full dutiable value of the property before any concessions are applied.

First home buyer concessions typically reduce or eliminate the standard duty component, but they do not affect the foreign buyer surcharge. The surcharge is treated as a separate calculation applied to the full property value.

In South Australia, this distinction is particularly significant. A first home buyer purchasing a new home valued under the relevant threshold could have their standard duty reduced to $0, but they will still owe the full 7% foreign buyer surcharge. On a $500,000 property, that means $0 in standard duty but $35,000 in foreign surcharge.

How to Calculate Foreign Buyer Stamp Duty

The formula for calculating total stamp duty as a foreign buyer is straightforward:

For example, if you are buying a $600,000 property in Victoria: the standard duty is calculated using VIC's progressive brackets (approximately $31,070), then the 8% foreign surcharge adds $48,000, giving a total of approximately $79,070.