LODGEYGLOSSARY
State Tax

Foreign Buyer Surcharge

Extra 7–8% stamp duty for foreign nationals buying Australian property.

Definition

Most Australian states impose an additional stamp duty surcharge of 7–8% on property purchases by foreign persons. Victoria charges 8%, NSW charges 8%, and Queensland charges 7%. A 'foreign person' includes individuals who are not Australian citizens or permanent residents, as well as foreign-controlled companies and trusts. FIRB (Foreign Investment Review Board) approval is also required for most foreign purchases.

WHY IT MATTERS

On a $700,000 property, an 8% surcharge adds $56,000 to the acquisition cost. Combined with standard stamp duty, this can add over $90,000 to the purchase price. Temporary visa holders, including those on work visas, are generally classified as foreign persons for this surcharge.

Related terms

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