Generally when foreign persons buy residential land it is liable to surcharge purchaser duty. However, if you’re an Australian-based developer who is a foreign person you may be able to claim an exemption or refund.
The concession will be administered on an exemptions and/or refunds basis. This depends on whether the Chief Commissioner of Revenue NSW is of the opinion that the Australian-based developer would likely become entitled to a full refund of the surcharge purchaser duty on a transaction or a class of transactions to which the concession applies.
To support the NSW Government’s Housing Affordability Strategy, the Chief Commissioner of Revenue NSW will consider granting exemptions from surcharge purchaser duty before administering refunds on a proportionate basis.
Eligibility for exemption will depend on the Australian-based developer supplying documents, which may assist the Chief Commissioner of Revenue NSW in forming an opinion on entitlement.
The minimum requirements for an Australian-based developer to be granted a refund are that it meets the following requirements of the Duties Act 1997 Section 104 ZJA:
If the requirements are satisfied a refund of the whole or a proportion of the surcharge purchaser duty will be paid in line with an order made by the Treasurer.
If the developer is an ‘exempt transferee’, a refund of the full amount of surcharge purchaser duty will be granted however the Treasurer’s orders would not apply.
An ‘exempt transferee’ may, for future transactions, be exempted from surcharge purchaser duty.
An application for reassessment and refund must be made
Application for exemption or reassessment cannot be processed on EDR and must be made by way of submissions via our eDuties portal.
The submission must set out the grounds for exemption or reassessment together with documents set out in clause 11 to support clause 9 and 10 of Revenue Ruling No. G 013: Exemption from surcharge for new home development by Australian-based developers that are foreign persons.
For applications for exemption where a transaction has been entered into, and no surcharge purchaser duty has been paid, the lodgement will also need to include:
Applications for pre-transaction approvals must also be made by way of submissions via the eDuties portal, setting out the grounds for exemption and include a declaration that the purchaser/transferee is eligible for an exemption as it has met (or will meet) the requirements in:
For reassessments, the lodgement will also need to include:
From 4 May 2020, paper and emailed lodgements will not be accepted. Lodgements must be submitted via the eDuties portal.
Refund payments will be processed via Electronic Funds Transfer, and Applicants must submit their details by completing this form.
Eligible applicants will receive further instructions on how to proceed once their matter is determined.