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Surcharge purchaser duty for residential premises that are not dwellings
Foreign persons who acquire residential-related land in NSW that is used for certain purposes may not be liable for surcharge purchaser duty.
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Generally, when a foreign person acquires residential-related land in New South Wales (NSW) that person must pay surcharge purchaser duty, in addition to any transfer duty.
However, you may not have to pay surcharge purchaser duty if you purchase residential-related property that is used for certain qualifying purposes.
This page provides an overview of eligibility requirements, how to apply to Revenue NSW and how to request a refund if it has already been paid.
For properties purchased after 21 June 2016, foreign buyers do not generally have to pay surcharge purchaser duty on certain types of property, including:
hotels, motels and inns
hostels and boarding houses
student accommodation
aged care and other care facilities
bed and breakfast accommodation
caravan and home parks, and
separately titled rooms, apartments, serviced apartments, cottages and villas used for short-term accommodation.
To qualify, your property must meet specific requirements.
Other categories of residential premises (not listed above) may still be determined not to be a dwelling meaning surcharge purchaser duty may not be payable. You must apply to Revenue NSW for your matter to be considered on a case-by-case basis.
Required documents
Your application must include the following documents:
A written explanation of how your property is used. You will need to show that no part of the property is used as a dwelling and reference the criteria outlined in section 104I(2) of the Duties Act 1997.
An original copy of the Contract for the Sale of Land.
Body corporate by-laws that detail how the property is used
How to apply
All applications must be lodged online by a legal representative.
Your legal representative will:
prepare all necessary transfer documents
ensure your property settlement agreement is properly documented
complete and lodge the application with Revenue NSW on your behalf
ensure all requirements are met and forms are correctly completed, and
handle the settlement process.
Applying for a refund
If you have already paid surcharge purchaser duty but you believe that your residential premises should not be considered a dwelling, you can apply for a reassessment and refund.
Reassessments and refunds are not automatic and are generally lodged by your legal representative, such as a solicitor or conveyancer.
If you do not have a solicitor or conveyancer acting for you, you can submit your refund application and supporting documents with Revenue NSW yourself.
You must apply within 5 years of the initial assessment.
Note for solicitors and conveyancers
These applications and reasssessments cannot be processed on Electronic Duties Returns.
Revenue NSW will review your application and supporting documents.
Your legal representative can advise when you can expect a decision about your application.
We may request additional evidence to verify the information you provide.
Duties Notice of Assessment
A Duties Notice of Assessment (Notice of Assessment) is a document from Revenue NSW that informs a purchaser or transferee of the amount of duty they must pay.
When your application has been assessed your legal representative will receive a Notice of Assessment showing:
whether you must pay surcharge purchaser duty, and/or
the amount of any transfer duty you owe.
Read more about paying duties, including what happens if you do not pay by the due date.
Processing of refund payments
Refund payments will be processed via Electronic Funds Transfer (EFT).
For privacy and security reasons, applicants must provide their account details on the EFT details for refund form.
Eligible applicants will receive further instructions on how to proceed once their matter is determined.
Objections and reviews
If we reject your application for an exemption, you can lodge an objection with us within 60 days of the decision.
If your objection is unsuccessful, or we do not respond within 90 days, you have the right to seek a review by the NSW Civil and Administrative Tribunal (NCAT).
Foreign persons who own residential property used for a commercial purpose in NSW may also be eligible for a surcharge land tax exemption.
Contact us
Call the duties team on 1300 139 814 or +61 2 7808 6916 if you are overseas. Staff are available Monday to Friday, 8.30am to 5.00pm AEST (excluding public holidays).
