The Complete State-by-State Guide to Foreign Buyer Stamp Duty Surcharges in Australia (2025 Update)

Last Updated: November 2025

If you're a foreign investor eyeing Australian property, stamp duty surcharges are one of your largest upfront costs—and they vary dramatically by state. In New South Wales, you'll pay 9% on top of standard stamp duty. In the Northern Territory? Zero surcharge.

This comprehensive guide breaks down exactly what you'll pay in each state and territory, who qualifies as a "foreign person," and strategic insights to minimize your costs.

Quick Reference: 2025 Surcharge Rates by State

State/Territory	Surcharge Rate	On Top Of Standard Duty	Effective From
New South Wales	9%	Yes	January 1, 2025
Victoria	8%	Yes	Current
Queensland	8%	Yes	July 1, 2024
South Australia	7%	Yes	Current
Western Australia	7%	Yes	Current
Tasmania	8%	Yes	Current
ACT	No surcharge	N/A	N/A
Northern Territory	No surcharge	N/A	N/A

The bottom line: Where you buy can save you tens of thousands—or cost you hundreds of thousands—in surcharges alone.

Understanding the Basics: What Is Foreign Buyer Stamp Duty?

What Is Stamp Duty?

Stamp duty (also called transfer duty or land transfer duty) is a state-based tax levied when property ownership changes hands. It's calculated as a percentage of either the purchase price or market value—whichever is higher.

Standard stamp duty rates typically range from 1.5% to 5.5% depending on the state and property value, with graduated scales where higher-value properties pay higher rates.

What Is the Foreign Buyer Surcharge?

The foreign buyer stamp duty surcharge is an additional tax imposed specifically on foreign purchasers of residential property. It's charged on top of the standard stamp duty that all buyers pay.

This surcharge was introduced progressively across Australian states between 2015 and 2019 as a policy measure to:

Cool the housing market
Make it more difficult for foreign capital to compete with local buyers
Generate additional revenue for state governments
Protect housing affordability for Australian residents

Important: The surcharge applies to the full property value, not just the surcharge rate itself.

Real-World Example

Let's compare a $1 million property purchase in NSW vs. NT:

New South Wales (9% surcharge):

Standard stamp duty: ~$40,000
Foreign buyer surcharge (9% × $1M): $90,000
Total upfront stamp duty: $130,000

Northern Territory (no surcharge):

Standard stamp duty: ~$40,000
Foreign buyer surcharge: $0
Total upfront stamp duty: $40,000

Difference: $90,000 savings in NT

State-by-State Breakdown

1. New South Wales (NSW): 9% Surcharge

Current Rate: 9% (increased from 8% on January 1, 2025) Applies To: All residential-related property Official Source: Revenue NSW

Who Is Considered a Foreign Person in NSW?

You're a foreign person if you're:

Not an Australian citizen, AND
Not a permanent resident, AND
Not a New Zealand citizen with a special category visa (subclass 444) who has been in Australia for at least 200 days in the 12 months before the contract date

Temporary residents (including 457, 482, student visa holders, partner visas) are considered foreign persons for surcharge purposes.

Special NSW Rules

Corporations: A corporation is foreign if:

Not incorporated in Australia, OR
Incorporated in Australia but foreign persons or entities hold a "substantial interest" (20%+) or "aggregate substantial interest" (40%+ combined)

Trusts: A trust is foreign if foreign persons hold a substantial interest (20%+) in the trust estate.

What Property Does It Apply To?

Residential land (houses, apartments, townhouses)
Vacant residential land
Mixed-use property (surcharge applies to residential portion)

Real Calculation Example (NSW)

Property: $850,000 apartment in Sydney Buyer: Temporary resident on 482 visa

Standard stamp duty: ~$33,000
Foreign buyer surcharge (9% × $850,000): $76,500
Total: $109,500

Plus:

FIRB application fee: $42,300 (for established dwelling)
Annual land tax surcharge: 5% (if applicable)

First-year total cost: $151,800 before even considering mortgage, insurance, or other costs.

Exemptions and Refunds in NSW

Spousal exemption: If you buy with an Australian citizen or PR spouse as joint tenants (not tenants in common), the surcharge doesn't apply.

Permanent residency refund: If you obtain PR within 12 months of purchase or were already in the process, you may be eligible for a refund.

200-day rule: If you're a PR and have been in Australia for at least 200 days in the 12 months before contract, you're exempt.

2. Victoria (VIC): 8% Surcharge

Current Rate: 8% Applies To: Residential property Official Source: State Revenue Office Victoria

Who Is Considered a Foreign Person in Victoria?

You're a foreign natural person if you're not:

An Australian citizen
An Australian permanent resident
A New Zealand citizen with a special category visa (subclass 444)

Critical difference from NSW: Victoria doesn't have a 200-day residency requirement for PRs—if you have PR status, you're not considered foreign, even if you live overseas.

Victoria-Specific Considerations

Corporations: A corporation is foreign if:

Incorporated outside Australia, OR
A foreign person has a "controlling interest" (50%+) in the corporation

Trusts: Trustees are foreign if foreign persons have a "substantial interest" (50%+ beneficial interest or maximum discretionary entitlement exceeds 50%).

What Property Does It Apply To?

Residential land (including land capable of residential use)
Land being refurbished/extended for residential use
Land for residential construction

Real Calculation Example (VIC)

Property: $650,000 house in Melbourne Buyer: International student

Standard stamp duty: ~$34,000
Foreign purchaser additional duty (8% × $650,000): $52,000
Total: $86,000

Plus:

FIRB fee: $42,300 (established dwelling)
Annual absentee land tax surcharge: 4% (if applicable)

Key Victorian Exemption: Principal Place of Residence

If you purchase jointly with an Australian citizen/PR spouse as joint tenants AND:

You live in the property as your principal place of residence
For a continuous 12-month period
Starting within 12 months of becoming entitled to possession

...you may be entitled to an exemption from the additional duty.

Important: You must apply for this exemption. The Commissioner has discretion to vary the 12-month residence period in special circumstances.

Build-to-Rent Exemptions

Victoria offers exemptions for qualifying Build-to-Rent developments. Foreign corporations/trusts may be exempt if their activities add to Victoria's housing stock.

3. Queensland (QLD): 8% Surcharge

Current Rate: 8% (increased from 7% on July 1, 2024) Official Name: Additional Foreign Acquirer Duty (AFAD) Official Source: Queensland Revenue Office

Who Is Considered a Foreign Acquirer in Queensland?

Individuals: You're a foreign acquirer if you're not:

An Australian citizen
An Australian permanent resident
A New Zealand citizen with a special category visa (subclass 444)

Note: Queensland's definition aligns with FIRB's definition of "foreign person."

Queensland-Specific Rules

Corporations: Foreign if:

Incorporated outside Australia, OR
Foreign persons have a "substantial interest" (20%+) or "aggregate substantial interest" (40%+ combined)

Trusts: Foreign if foreign persons/entities have a substantial interest (20%+ minimum possible distribution or 100% discretionary power).

Partial Interests: AFAD only applies to the portion being acquired by the foreign person.

Real Calculation Example (QLD)

Property: $600,000 townhouse in Brisbane Buyer: Foreign national purchasing 50% with Australian citizen spouse

Standard stamp duty (full property): ~$16,500
AFAD (8% × $600,000 × 50%): $24,000
Total: $40,500

The surcharge only applies to the foreign buyer's 50% share if purchasing as tenants in common.

Major 2025 Changes in Queensland

Massive Stamp Duty Reform: Queensland eliminated stamp duty for first home buyers purchasing new builds (no value cap) effective June 9, 2024.

This doesn't eliminate AFAD: Foreign buyers still pay the 8% surcharge even on new builds, but they benefit from $0 standard stamp duty on new properties.

Example benefit:

$700,000 new apartment
Standard stamp duty (Australian): $0
AFAD (foreign buyer): $56,000
Savings vs. established property: ~$17,000

4. South Australia (SA): 7% Surcharge

Current Rate: 7% Applies To: Residential property Effective: January 1, 2018

Who Is Considered a Foreign Person in SA?

The definition largely follows FIRB's definition:

Not an Australian citizen
Not an Australian permanent resident
Not a NZ citizen with special category visa

What Property Does It Apply To?

Residential land
Land for residential development
Mixed-use property (apportioned to residential component)

Real Calculation Example (SA)

Property: $500,000 house in Adelaide Buyer: Temporary resident

Standard stamp duty: ~$21,500
Foreign ownership surcharge (7% × $500,000): $35,000
Total: $56,500

SA Advantage for Returning Residents

South Australia is noted for providing "the most generous exemptions for returning residents" according to industry analysis. If you're an Australian citizen or PR who has been living overseas, SA's interpretation tends to be more favorable.

5. Western Australia (WA): 7% Surcharge

Current Rate: 7% Applies To: Residential property Official Source: WA Department of Finance

Who Is Considered a Foreign Person in WA?

Individuals:

Not an Australian citizen
Not holding a permanent residence visa
Not a NZ citizen with subclass 444 visa

Corporations: Foreign if:

Not incorporated in Australia, OR
Foreign persons have a substantial interest (40%+)

What Property Does It Apply To?

Residential property
Excludes: Commercial property, residential developments (10+ properties), mixed-use properties primarily for commercial purposes

Real Calculation Example (WA)

Property: $750,000 house in Perth Buyer: Foreign corporation (100% foreign ownership)

Standard stamp duty: ~$30,000
Foreign purchaser surcharge (7% × $750,000): $52,500
Total: $82,500

WA-Specific Consideration

Contact the WA Department of Finance at +61 8 9262 1100 for specific advice, as interpretations and exemptions can vary.

6. Tasmania (TAS): 8% Surcharge

Current Rate: 8% (residential property) Additional: 1.5% (primary production land) Applies To: Residential and primary production land

Who Is Considered a Foreign Person in Tasmania?

Individuals:

Not an Australian citizen
Not an Australian permanent resident
Not a NZ citizen with subclass 444 visa

Tasmania is noted for having "strict documentation requirements" despite the lack of major concessions.

What Property Does It Apply To?

Residential property: 8% surcharge
Primary production land: 1.5% surcharge

This makes Tasmania unique—it's one of the few jurisdictions charging surcharges on agricultural land.

Real Calculation Example (TAS)

Property: $400,000 apartment in Hobart Buyer: Temporary resident

Standard stamp duty: ~$13,000
Foreign investor duty surcharge (8% × $400,000): $32,000
Total: $45,000

Tasmania's surcharge rate matches Victoria despite having lower property prices, making the relative burden significant.

7. Australian Capital Territory (ACT): NO SURCHARGE

Current Rate: 0% (no stamp duty surcharge for foreign buyers) Alternative Consideration: 0.75% foreign land tax surcharge applies

Why No Stamp Duty Surcharge?

The ACT is one of only two jurisdictions not imposing a stamp duty surcharge on foreign buyers. This creates a significant competitive advantage for foreign investment in Canberra.

What You'll Pay Instead

While there's no stamp duty surcharge, foreign owners in ACT face:

Standard stamp duty: Same as Australian residents (rates vary by property value)
Foreign surcharge land tax: 0.75% of unimproved land value (annual)

Real Calculation Example (ACT)

Property: $650,000 apartment in Canberra Buyer: Foreign investor

Standard stamp duty: ~$22,000
Foreign buyer surcharge: $0
Total upfront: $22,000

Annual ongoing:

Land tax surcharge: 0.75% of unimproved value

Strategic Advantage

The ACT's lack of stamp duty surcharge, combined with a land tax surcharge of only 0.75%, makes it attractive for cross-border investors compared to states with 7-9% stamp duty surcharges.

8. Northern Territory (NT): NO SURCHARGE

Current Rate: 0% (no stamp duty surcharge) Land Tax: None (NT doesn't impose land tax at all)

The NT Advantage

Northern Territory is the only state free of both a stamp duty surcharge and land tax hike. This makes it the most tax-advantaged jurisdiction for foreign property investment in Australia.

What You'll Pay

Standard stamp duty: Same rates as Australian residents
Foreign buyer surcharge: $0
Annual land tax: $0 (NT has no land tax)

Real Calculation Example (NT)

Property: $500,000 house in Darwin Buyer: Foreign investor

Standard stamp duty: ~$20,000
Foreign buyer surcharge: $0
Total: $20,000

Annual ongoing costs:

Land tax: $0

Comparison: The same property in NSW would cost:

Stamp duty + surcharge: $65,000
Savings in NT: $45,000

Why Isn't NT More Popular?

While the tax advantages are clear, foreign investment levels remain moderate due to:

Smaller, less liquid property market
Fewer premium property options
Distance from major economic centers
Climate considerations

However, for investors prioritizing tax efficiency and rental yields (Darwin offers some of Australia's highest), NT presents a compelling case.

Who Exactly Is a "Foreign Person"? Detailed Definitions

The devil is in the details. Here's what determines your status:

Individuals

✅ NOT foreign (no surcharge):

Australian citizens
Australian permanent residents
New Zealand citizens with special category visa (subclass 444)

❌ Foreign (surcharge applies):

Foreign nationals (any country)
Temporary visa holders (457, 482, student, partner visas, etc.)
Bridging visa holders (in most cases)

The 200-Day Rule (NSW Only)

In NSW, even permanent residents can be considered foreign if they haven't been in Australia for at least 200 days in the 12 months before the contract date.

Corporations

A corporation is generally foreign if:

Incorporated outside Australia, OR
Foreign persons/entities hold:
- Substantial interest: 20%+ ownership (most states)
- Controlling interest: 50%+ ownership (Victoria)
- Aggregate substantial interest: 40%+ combined ownership by multiple foreign parties

Trusts

A trust is generally foreign if:

The trustee is foreign, OR
Foreign persons have:
- A substantial beneficial interest (typically 20%+), OR
- Maximum discretionary entitlement exceeds the threshold, OR
- The trustee has 100% discretionary power to distribute to foreign persons

Special Cases

Joint Tenants vs. Tenants in Common:

Joint tenants with Australian citizen/PR spouse: May be exempt (check state-specific rules)
Tenants in common: Surcharge applies proportionally to foreign person's share

Corporate Structures:

Multiple layers of ownership are "looked through" to determine ultimate foreign control
Complex structures should seek professional advice

Strategic Insights: How to Minimize Your Surcharge

Strategy 1: Choose Your State Wisely

If you have flexibility in where you invest:

Lowest cost jurisdictions:

Northern Territory: 0% surcharge, 0% land tax
ACT: 0% surcharge, 0.75% land tax surcharge
SA/WA: 7% surcharge (lowest among states with surcharges)

Highest cost jurisdictions:

NSW: 9% surcharge + 5% annual land tax surcharge
VIC/QLD/TAS: 8% surcharge + varying land tax surcharges

Savings example: Buying a $1M property in NT vs. NSW saves $90,000 upfront.

Strategy 2: Purchase with an Australian Spouse as Joint Tenants

If you're married to or in a de facto relationship with an Australian citizen/PR:

Purchase as joint tenants (not tenants in common)
Some states provide full exemption
Check state-specific rules carefully

Important: This doesn't work in all states and doesn't apply to other relationships (siblings, business partners, parents/children).

Strategy 3: Pursue Permanent Residency First

If you're planning to apply for PR:

Consider waiting until approval before purchasing
OR structure purchase to qualify for refund if PR granted within 12 months
Calculate the cost of waiting vs. paying surcharge

Strategy 4: Focus on New Construction

In Queensland, foreign buyers benefit from:

$0 stamp duty on new builds (any price)
Only 8% AFAD surcharge applies
Still saves money vs. established property

In other states:

Some offer concessions for new construction
Build-to-Rent projects may qualify for exemptions (VIC, QLD)
Consider buying land + building vs. established dwelling

Strategy 5: Structure Through Exempt Entities

Some development corporations may qualify for exemptions if:

Incorporated in Australia
Genuinely increase housing stock
Meet state-specific eligibility criteria

Caution: This is complex and requires professional legal/tax advice.

Strategy 6: Time Your Purchase Strategically

Before becoming a temporary resident: May avoid surcharge in some circumstances
After obtaining PR: Eliminates surcharge entirely
Around the 200-day mark (NSW): Ensure you meet residency requirements

Comparison Tables for Common Property Values

$500,000 Property

State	Standard Duty	Surcharge	Total	Savings vs. NSW
NSW	$17,750	$45,000	$62,750
VIC	$21,500	$40,000	$61,500	$1,250
QLD	$16,500	$40,000	$56,500	$6,250
SA	$21,500	$35,000	$56,500	$6,250
WA	$17,500	$35,000	$52,500	$10,250
TAS	$13,000	$40,000	$53,000	$9,750
ACT	$10,000	$0	$10,000	$52,750
NT	$20,000	$0	$20,000	$42,750

$1,000,000 Property

State	Standard Duty	Surcharge	Total	Savings vs. NSW
NSW	$40,000	$90,000	$130,000
VIC	$55,000	$80,000	$135,000	-$5,000
QLD	$38,000	$80,000	$118,000	$12,000
SA	$43,000	$70,000	$113,000	$17,000
WA	$40,000	$70,000	$110,000	$20,000
TAS	$40,000	$80,000	$120,000	$10,000
ACT	$22,000	$0	$22,000	$108,000
NT	$40,000	$0	$40,000	$90,000

$2,000,000 Property

State	Standard Duty	Surcharge	Total	Savings vs. NSW
NSW	$100,000	$180,000	$280,000
VIC	$110,000	$160,000	$270,000	$10,000
QLD	$92,000	$160,000	$252,000	$28,000
SA	$98,000	$140,000	$238,000	$42,000
WA	$100,000	$140,000	$240,000	$40,000
TAS	$100,000	$160,000	$260,000	$20,000
ACT	$75,000	$0	$75,000	$205,000
NT	$100,000	$0	$100,000	$180,000

Note: Standard duty amounts are approximate and vary by specific property value and state brackets.

Beyond Stamp Duty: Other Foreign Investor Costs

1. FIRB Application Fees

Established dwellings: $42,300+ (tripled in April 2024) New dwellings: $14,100+ Applies: Nationally (federal, not state-based)

Read our complete guide to FIRB fees

2. Annual Land Tax Surcharges

Most states also impose annual land tax surcharges on foreign owners:

State	Annual Land Tax Surcharge
NSW	5% (increased from 4% in 2025)
VIC	4%
QLD	3%
SA	4%
WA	2%
TAS	1.5%
ACT	0.75%
NT	0% (no land tax at all)

These surcharges apply to the land value and are paid every year you own the property.

3. Vacancy Fees (Federal)

If you own an established dwelling purchased after May 9, 2017, and it's vacant or not genuinely available for rent for 183+ days per year:

Vacancy fee: Double your FIRB application fee
Example: $84,600/year for a $1M established property

4. Capital Gains Tax Withholding

When you sell:

Withholding rate: 15% (increased from 12.5% in 2025)
Applies to properties sold for $750,000+
Held by ATO until your tax return is processed

State-Specific Exemptions and Refunds

New South Wales

Developer exemption: Australian-incorporated developers building new homes may be exempt

PR refund: Obtain PR within 12 months → refund available

200-day exemption: PR holders in Australia 200+ days before contract → exempt

Victoria

PPR exemption: Joint purchase with Australian spouse as joint tenants + 12-month occupancy

Build-to-Rent exemption: Qualifying BTR projects adding housing stock

PR transition: If foreign when purchasing but obtain PR later, no retroactive refund (unlike NSW)

Queensland

Developer relief: Australian-based foreign entities whose commercial activities add housing stock

Proportional application: Surcharge only on foreign person's share in tenants-in-common purchases

Tasmania

Limited exemptions: Few exemptions available; strict documentation required

Calculating Your Total Investment Cost

Use our comprehensive calculator to get an accurate breakdown including:

✓ State-specific stamp duty (standard rates) ✓ Foreign buyer surcharge (current 2025 rates) ✓ FIRB application fees ✓ Annual land tax surcharges ✓ Potential vacancy fees ✓ 10-year cost projections

Example output for $850,000 property in VIC:

Cost Item	Amount
Purchase price	$850,000
Standard stamp duty	$45,000
Foreign purchaser duty (8%)	$68,000
FIRB fee (established)	$42,300
Total upfront	$155,300
Annual land tax surcharge (4%)	$34,000/year
Potential vacancy fee	$84,600/year

Frequently Asked Questions

Q: I'm an Australian citizen living overseas. Do I pay the surcharge?

A: No. Australian citizens are exempt from foreign buyer surcharges in all states, even if you're living abroad permanently. However, you may still face stamp duty itself and potentially absentee owner land tax surcharges in some states.

Q: I'm on a 482 work visa. Am I considered foreign?

A: Yes. Temporary visa holders are considered foreign persons and subject to the surcharge. The only visa exemptions are for:

Australian PR holders
NZ citizens with subclass 444 visa (meeting 200-day requirement in NSW)

Q: Can I get a refund if I get PR after buying?

A: Depends on the state:

NSW: Yes, if obtained within 12 months or meeting 200-day rule
Victoria: No automatic refund, but may apply for exemption under specific PPR conditions
Other states: Varies; seek specific advice

Q: Does the surcharge apply to commercial property?

A: Generally no. Surcharges typically apply only to residential property. However, for mixed-use property, surcharges are apportioned to the residential component.

Q: I'm buying 50/50 with my Australian spouse. Do I pay the surcharge?

A: It depends on how you structure ownership:

Joint tenants with spousal relationship: May be exempt (check state rules)
Tenants in common: Surcharge applies to your 50% share only

Q: Is the surcharge tax-deductible?

A: No. Stamp duty and surcharges are capital costs, not deductible expenses. They form part of your cost base for capital gains tax purposes when you eventually sell.

Q: Can I nominate someone else to buy on my behalf to avoid the surcharge?

A: No. This is illegal and constitutes stamp duty evasion. Revenue authorities look through nominee arrangements to determine the true beneficial owner. Penalties for evasion can be severe.

Q: Does buying off-the-plan reduce the surcharge?

A: No—the surcharge rate is the same whether you buy established or off-the-plan. However, in Queensland, you benefit from $0 standard stamp duty on new builds, so your total cost is lower (surcharge only).

Q: What if I'm from New Zealand, Finland, Germany, or South Africa?

A: There was some historic consideration around double tax treaties, but the Foreign Investment Bill 2024 allows states to impose foreign surcharges despite these treaties. Check current state-specific rules, as interpretations vary.

Recent Changes and What's Coming in 2025-2026

Implemented Changes

NSW (January 1, 2025):

Stamp duty surcharge: 8% → 9%
Land tax surcharge: 4% → 5%
Capital gains withholding: 12.5% → 15%

Queensland (July 1, 2024):

AFAD surcharge: 7% → 8%
Land tax surcharge: 2% → 3%
Eliminated stamp duty for first home buyers (new builds)

FIRB (April 9, 2024):

Tripled application fees for established dwellings
Doubled vacancy fees

What's Coming

Established Dwelling Ban (April 1, 2025 - March 31, 2027): Federal government implementing temporary ban on foreign purchases of established dwellings with limited exceptions for:

Temporary residents (principal residence only)
Build-to-Rent projects
Major redevelopment (20+ dwellings)

This will effectively eliminate established dwelling purchases for most foreign non-residents, making surcharges less relevant for this category.

Potential Future Increases: With NSW leading at 9%, other states may follow suit. Queensland and Victoria traditionally align their policies, so watch for potential increases in 2026-2027.

The Bottom Line: Location Matters Enormously

For a $1 million property purchase, here's what location choice means for your upfront costs:

Most expensive: NSW → $130,000 in stamp duty costs Least expensive: ACT → $22,000 in stamp duty costs Difference: $108,000 savings by choosing wisely

Key Takeaways:

Surcharges range from 0% to 9% depending on state
NT and ACT offer zero surcharge (NT also has no land tax)
NSW is most expensive at 9% surcharge + 5% annual land tax surcharge
Your visa status matters — temporary residents pay surcharges, PRs don't
Structure matters — joint tenants vs. tenants in common affects liability
Timing matters — obtaining PR before or shortly after purchase can save tens of thousands

Before committing to any purchase, use our complete cost calculator to see your exact total investment including all federal and state-based fees, surcharges, and ongoing costs.

Additional Resources

Disclaimer: This article provides general information only and should not be relied upon as legal, tax, or financial advice. Stamp duty rates and surcharges are subject to change. Always verify current rates with the relevant state revenue office and seek professional advice specific to your circumstances before making any investment decisions.

Last updated: November 28, 2025. Rates current as of this date but subject to annual indexation and policy changes.