8. International tax treaties

Overview

It was previously determined that the NSW surcharge provisions were inconsistent with international tax treaties between Australia and the following eight countries: New Zealand, Finland, Germany, India, Japan, Norway, South Africa, and Switzerland.

As a result of the Federal Treasury Laws Amendment (Foreign Investment) Bill 2024 receiving assent on the 8 April 2024, citizens of these eight countries may now be liable to pay surcharge purchaser duty for acquisitions of residential-related property where the transaction is entered into on or after 8 April 2024.

Individuals' liability

Individual purchasers/transferees that are citizens of the above nations, purchasing residential-related property in their own capacity (i.e. not as trustees of a trust or general partners of a limited partnership) will now be subject to surcharge purchaser duty unless they:

• are ordinarily resident in Australia
• an Exempt permanent resident
• hold a Partner (provisional) visa (subclass 309 or 820) and meet the residence requirements
• hold a Retirement visa (subclass 405 or 410) and meet the residence requirements.

Refer to Chapter 2 - Individuals for further details on determining an individual’s foreign status.

Non-individual liability

Individuals acting as trustees of a trust, individuals that are general partners of a limited partnership and non-individual purchasers/transferees may now subject to surcharge purchaser duty if they are foreign persons solely by reason of a substantial interest (or an aggregate substantial interest) being held by a person from these nations.

For the avoidance of doubt, the non-individual purchaser will be liable to surcharge purchaser duty if a foreign person directly or indirectly holds a substantial interest (or aggregate substantial interest) in the purchaser/transferee.

General information on determining substantial interests (or aggregate substantial interests) for non-individual purchaser/transferees can be found in this guide.

Processing and lodgement requirements

Transactions entered into on or after 8 April 2024

Revenue NSW and Client Service Providers (CSPs) are updating their systems to accommodate these changes.

If your matter is not urgent, please delay processing until the systems are available.

For urgent matters, contact the EDR support team on 1300 308 863.

Revenue NSW will provide updates once the systems are available.

Transactions entered into on or before 7 April 2024

Individuals

Transactions that involve any individuals who are citizens of one of the nations concerned and are acquiring residential-related property in their own capacity must continue to be processed on EDR.

Non individuals

If the non-individual purchaser is affiliated with nations affected by international tax treaties, the transaction may be processed on EDR or lodged with Revenue NSW for assessment.

Lodging transactions with Revenue NSW

When lodging transactions for assessment via eDuties, use the application type ‘other’ and provide the following:

• Cover letter confirming the transaction includes purchasers/transferees affiliated with the nations above.
• Executed instrument/s (e.g. contract, transfer)
• For each purchaser/transferee, completed Purchaser/transferee declaration for individuals (ODA 076I), or Purchaser/transferee declaration for non-individuals (ODA 076NI)
• Certified Client Identification and proof of status documents
• Any other information that may assist in the assessment of the application (optional)

Updated Revenue NSW forms

Purchaser/transferee declaration forms

• Purchaser/transferee declaration for individuals - ODA 076I
• Purchaser/transferee declaration for non-individuals - ODA 076NI
• Purchaser/transferee declaration explanatory notes - ODA 076 EN

Landholder forms

• Acquisition statement: interest in a private landholder - ODA 043 A
• Acquisition statement: acquisition of an interest in a primary producer - ODA 043 C
• Exempt acquisition statement: acquisition of an interest in a landholder - ODA 047

Future updates

Revenue NSW will provide further advice as it becomes available.

Please continue to monitor this website for updates.

Frequently Asked Questions