A new rebate has been made available from 4 September 2024. The rebate is available for medical centres who bulk bill a majority of their GP services. Click the arrow to find out more including detailed eligibility criteria.
This tax is paid by owners of residential land in NSW who are foreign persons. Learn if you are eligible for an exemption and about surcharge land tax rates.
Last updated:
On this page
If you are a foreign person who owns residential land in NSW, you must pay surcharge land tax in addition to any land tax you may already pay.
This surcharge applies even if your property is exempt from regular land tax.
Who is a foreign person?
You are generally considered a foreign person, unless you are:
an Australian citizen, or
a permanent resident of Australia who has lived in Australia for 200 days or more within a calendar year (the 200 days do not have to be consecutive).
This definition means that a permanent resident of Australia who lives overseas for 165 days or more in a calendar year (166 days or more in a leap year) is considered a foreign person and may be liable for surcharge land tax.
A trust may be liable for surcharge land tax if any number of beneficiaries are foreign persons. This includes special trusts, discretionary trusts and fixed trusts.
Land used for primary production is not considered residential land, even if it meets any of the above criteria.
How much is surcharge land tax?
If you are a foreign owner, you must pay surcharge land tax on the unimproved land value of all residential land that you own as at midnight 31 December each year.
Unimproved value means the value of the land itself, excluding buildings or other improvements.
Surcharge land tax rates
A tax-free threshold does not apply to surcharge land tax. You must pay surcharge land tax regardless of the land value of your property.
Land tax year (1 January – 31 December)
Rate
2025 onwards
5% of the land value of your property
2023 - 2024
4% of the land value of your property
2018 - 2022
2% of the land value of your property
Surcharge land tax is based on each piece of residential land and is proportional to your ownership share.
When a foreign person jointly owns land, they only pay surcharge land tax on their share of the property.
For example, if a property has two equal owners (50% each) and only one is a foreign person, Revenue NSW will only charge surcharge land tax on the foreign owner's 50% portion which will be issued in a secondary assessment.
The non-foreign owner is not liable for any surcharge land tax.
Calculation examples
Example 1
Including land tax
Landowner
Michael
Property
Property A (Residential) Land value: $600,000
Property B (Residential) Land value: $600,000
Land tax calculation
$1,200,000 (total land value) - $1,075,000 (2025 general land tax threshold) x 1.6% + $100 (general land tax rate) = $2,100
Surcharge land tax calculation
$1,200,000 (total residential land value) x 5% (2025 surcharge rate) = $60,000
Amount payable
Land tax payable = $2,100 Surcharge land tax payable = $60,000 Total = $62,100
Example 2
Excluding land tax
Landowner
Michelle
Property
Property C (Residential) Land value: $500,000
Land tax calculation
Michelle is not liable for land tax as her property does not exceed the 2025 land tax threshold ($1,075,000)
Surcharge land tax calculation
$500,000 (total residential land value) x 5% (2025 surcharge rate) = $25,000
Amount payable
Land tax payable = $0 Surcharge land tax payable = $25,000 Total = $25,000
Example 3
Including commercial land
Landowner
Jim
Property
Property D (Residential) Land value: $500,000
Property E (Commercial) Land value: $700,000
Land tax calculation
$1,200,000 (total land value) - $1,075,000 (2025 general land tax threshold) x 1.6% + $100 (general land tax rate) = $2,100
Surcharge land tax calculation
Property E is not included in this calculation as surcharge land tax does not apply to commercial land.
$500,000 (total residential land value) x 5% (2025 surcharge rate) = $25,000
Note: If a building has both residential and commercial purposes, an apportionment factor is used to apportion the land value and calculate surcharge land tax.
Amount payable
Land tax payable = $2,100 Surcharge land tax payable = $25,000 Total = $27,100
Example 4
Joint owners
This example looks at how Revenue NSW assesses land tax and surcharge land tax for a property jointly owned in equal shares by:
Alexandra (a foreign person), and
Michael (an Australian citizen).
While they share equal responsibility for the standard land tax payment, Alexandra must also pay surcharge land tax on her 50% share as a foreign owner.
Land tax calculation
Landowner
Alexandra and Michael
Property ownership
Property F Alexandra and Michael own 100% in equal shares (50% each) Land Value = $2,100,000
Calculation
$2,100,000 (total land value) - $1,075,000 (general land tax threshold) x 1.6% + $100 (general land tax rate) = $16,500
Land tax payable
$16,500
Surcharge land tax calculation
Foreign owner
Alexandra
Property ownership
Property F Alexandra owns 50% Land Value = $1,050,000 (50% of the total land value)
Calculation
$1,050,000 (proportionate land value) x 5% (2025 surcharge land tax rate) = $52,500
Surcharge land tax payable by Alexandra
$52,500
Exemptions and concessions
Intended principal place of residence exemption
If you are a foreign owner who lives in your property, you may be exempt from surcharge land tax if you meet certain requirements.
Australian-based corporations that are considered foreign who own and develop residential land in Australia may be eligible for an exemption, concession or refund on surcharge land tax if they meet certain requirements.
