Foreign persons who buy or own residential land in NSW will need to pay a foreign surcharge on that property.
Find out more about:
You’re generally considered a foreign person unless you’re:
- an Australian citizen
- a New Zealand Citizen holding a subclass 444 visa or
- a permanent resident and you’ve lived in Australia for more than 200 days in the last 12 months from your liability date.
In 2017 amendments were made to provide for surcharge concessions to Australian-based developers who are foreign persons.
How the surcharge works
There are two types of surcharge applied to residential land:
- Surcharge purchaser duty
- When you buy or acquire a residential property you must pay a surcharge of 8 per cent in addition to your transfer duty.
- Surcharge land tax
- You will need to pay surcharge on the taxable value of all the residential land you own as at 31 December each year. This is in addition to any land tax you may already pay and you may need to pay the surcharge even if you don’t pay land tax.
| Land tax year|| Surcharge on taxable value of residential land|
2 per cent
0.75 per cent|