Stamp duty surcharge for foreign buyers in Australia: state-by-state breakdown

Migratio Editorial · Last updated 23 July 2026

TL;DR: Most Australian states impose an additional stamp duty surcharge on property purchases by foreign buyers — typically 7–8% of the property value on top of standard stamp duty. On a AUD 800,000 property, the surcharge alone can exceed AUD 56,000. These surcharges apply to temporary visa holders and non-resident foreign nationals but not to permanent residents or citizens. Some states offer refunds if the buyer later obtains permanent residency.

Every Australian state and territory has introduced surcharges that add to the cost of property purchases by foreign buyers. These surcharges are separate from FIRB fees and are administered by each state's revenue office. They apply at the point of purchase (stamp duty surcharge) and in some cases annually (land tax surcharge, covered separately). For foreign buyers, these surcharges often represent the single largest additional cost of purchasing property in Australia compared to what a citizen or permanent resident would pay.

How the surcharge works

Standard stamp duty (also called transfer duty) applies to all property purchases in Australia, regardless of the buyer's nationality. The rate varies by state and by property value, but is typically 4–6% for properties in the AUD 500,000–1,000,000 range.

The foreign buyer stamp duty surcharge is an additional charge applied on top of the standard duty. It is calculated as a flat percentage of the property's purchase price or market value (whichever is higher). The surcharge is payable at settlement, alongside the standard stamp duty.

The surcharge applies to any buyer who is a "foreign person" under the relevant state legislation. The definition varies slightly by state but generally aligns with the federal definition used by the FIRB — anyone who is not an Australian citizen or permanent resident.

State-by-state surcharge rates

New South Wales charges an 8% surcharge purchaser duty on residential property acquired by foreign persons (Revenue NSW). On a AUD 800,000 property, the surcharge is AUD 64,000, in addition to standard stamp duty of approximately AUD 31,000. Total duty: approximately AUD 95,000.

Victoria charges an 8% foreign purchaser additional duty (State Revenue Office Victoria). On a AUD 800,000 property, the surcharge is AUD 64,000, in addition to standard stamp duty of approximately AUD 43,000. Total duty: approximately AUD 107,000.

Queensland charges a 7% Additional Foreign Acquirer Duty (AFAD) (Queensland Government). On a AUD 800,000 property, the surcharge is AUD 56,000, in addition to standard transfer duty of approximately AUD 21,000. Total duty: approximately AUD 77,000.

Western Australia charges a 7% foreign buyers duty surcharge (WA Department of Finance). On a AUD 800,000 property, the surcharge is AUD 56,000, in addition to standard transfer duty of approximately AUD 31,000. Total duty: approximately AUD 87,000.

South Australia charges a 7% foreign ownership surcharge. On a AUD 800,000 property, the surcharge is AUD 56,000.

Tasmania charges a 3% foreign investor duty surcharge. On a AUD 800,000 property, the surcharge is AUD 24,000.

ACT charges a surcharge that has varied — check the current rate with the ACT Revenue Office.

Northern Territory has historically not imposed a foreign buyer surcharge, though this may change.

These rates are subject to change. State governments have adjusted surcharge rates multiple times since their introduction, and some have signalled further changes. Always verify the current rate with the relevant state revenue office before purchasing.

When the surcharge applies

The surcharge applies to purchases of residential property by foreign persons. This includes houses, apartments, townhouses, and residential land. It applies whether the property is new or established, whether purchased for personal use or investment, and whether purchased individually or jointly with another person.

If a property is purchased jointly by a foreign person and an Australian citizen or permanent resident, the surcharge typically applies to the foreign person's share of the purchase. The exact calculation depends on the state — some states apply the surcharge to the full purchase price if any buyer is a foreign person, while others apportion based on ownership shares.

The surcharge generally does not apply to commercial property purchases, though some states have different rules for mixed-use properties with a residential component.

Refunds and exemptions for new permanent residents

Several states have introduced provisions that allow foreign buyers who subsequently become permanent residents to claim a refund of the surcharge, subject to conditions.

In NSW, a refund of the surcharge purchaser duty may be available if the buyer becomes an Australian permanent resident or citizen within a specified period after purchase. The timeframe and conditions have changed over time — check the current rules with Revenue NSW.

In Victoria, exemptions may be available in certain circumstances, including for some partner visa holders. The rules are complex and have been revised multiple times.

In Queensland, provisions may exist for refunds or exemptions in specific circumstances related to visa status changes.

The availability, conditions, and application process for refunds vary significantly by state and have changed frequently. If you are a temporary visa holder considering a property purchase and expect to receive permanent residency, check the current refund provisions in your state before purchasing — and factor the possibility that refund rules may change before your PR is granted.

How the surcharge interacts with other costs

The stamp duty surcharge is one of several additional costs foreign buyers face. The combined impact of FIRB fees, stamp duty surcharge, standard stamp duty, and legal fees can represent 12–18% of the property value in some states.

For a AUD 800,000 property in Victoria, the total upfront costs for a foreign buyer might be: standard stamp duty AUD 43,000, foreign buyer surcharge AUD 64,000, FIRB application fee AUD 14,100, legal and conveyancing fees AUD 2,000–4,000, and building and pest inspections AUD 500–800. Total: approximately AUD 124,000–126,000 in transaction costs.

By comparison, an Australian permanent resident buying the same property would pay approximately AUD 45,000–47,000 in transaction costs (standard stamp duty plus legal fees and inspections). The foreign buyer pays approximately AUD 80,000 more.

This cost differential is one of the strongest financial arguments for waiting until permanent residency is granted before purchasing property, if the visa timeline permits.

Compliance and enforcement

State revenue offices actively audit property purchases to identify foreign buyers who have not paid the surcharge. The ATO shares visa and citizenship data with state revenue offices, and property transaction records are cross-referenced with immigration records.

If a foreign buyer fails to pay the surcharge (for example, by incorrectly declaring themselves as a permanent resident on the transfer documents), the state revenue office can impose the surcharge retrospectively, plus interest and penalties. In serious cases, prosecution for providing false information on a statutory declaration is possible.

Ensuring your conveyancer or solicitor correctly identifies your status as a foreign person and calculates the surcharge is essential. Errors — whether intentional or accidental — can result in significant financial and legal consequences.

Frequently asked questions

Does the surcharge apply if I'm buying with my Australian citizen spouse?

This depends on the state. Some states apply the surcharge only to the foreign person's share of the purchase. Others may apply it to the full purchase price if any buyer is foreign. Check with the relevant state revenue office or your conveyancer.

Is the surcharge tax-deductible?

For investment properties, the surcharge may form part of the cost base for capital gains tax purposes. It is not deductible as an ongoing expense. For properties used as your residence, it is not deductible. Consult a registered tax agent.

Do New Zealand citizens pay the surcharge?

NZ citizens in Australia on a Special Category Visa (subclass 444) are generally classified as foreign persons for property purposes because the 444 is a temporary visa. They are typically subject to the surcharge. Some states have introduced specific exemptions or concessions for NZ citizens — check with the relevant state revenue office.

Can the surcharge rate change after I buy?

The surcharge rate that applies is generally the rate in effect at the date of the transaction. If the rate increases after you purchase, the increase does not apply retrospectively to your purchase. However, land tax surcharges (an ongoing annual charge) can change year to year.

What if I dispute whether I am a foreign person?

If you believe you have been incorrectly classified as a foreign person (for example, if your permanent residency was granted before the purchase date), you can object to the assessment through the state revenue office's formal objection process. Provide evidence of your visa status at the date of the transaction.

Compare MARA-registered migration agents — free