What is the Surcharge Purchaser Duty in NSW?

Surcharge Purchaser Duty is currently calculated as 8% of the purchase price of a residential property in addition to transfer duty that is already payable. As such, if you purchase a $1,000,000 residential property in NSW as a foreign person, an additional $80,000 in transfer duty is payable as follows: TYPE OF DUTY AMOUNT $AUD Transfer Duty $39,569.00 Surcharge Purchaser Duty $80,000.00 TOTAL DUTY $119,569.00

What changed from 8 April 2024?

Prior to 8 April 2024, it was identified that citizens of New Zealand, Finland, Germany, India, Japan, Norway, South Africa and Switzerland were not subject to Surcharge Purchaser Duty due to international tax treaties. On and from 8 April 2024, citizens of these counties no longer meet this exemption and may be required to pay Surcharge Purchaser Duty on any purchase of residential property.

Who is considered a foreign person for NSW stamp duty purposes?

Revenue NSW has provided guidance on whether a purchaser is deemed to be a foreign person for stamp duty purposes. According to Revenue NSW, you are not a foreign person if you are: An Australian Citizen; Ordinarily resident in Australia; or A New Zealand citizen who holds a special category visa who meets the 200-day test below. You are deemed to be ordinarily resident in Australia if you have been physically present in the country for 200 or more days in the period of 12 months immediately preceding the date of the agreement for your purchase and were not subject to any limitation as to your continued presence in Australia.

Which visa types are liable for the Surcharge Purchaser Duty?

Revenue NSW has published the following table providing guidance to purchasers on what visa types deem you to be a foreign person for stamp duty purposes. Visa Type Meet 200-day rule Foreign Person Liable to 8% Surcharge Permanent resident Yes No No New Zealand citizen holding special category visa (onshore) Yes No No Partner (309 & 820) Yes No No Retirement (405 & 410) Seek further advice Yes No Work N/A Yes Yes Temporary entry N/A Yes Yes Visitor N/A Yes Yes Bridging N/A Yes Yes Business N/A Yes Yes As noted above, a bridging Visa means you will be liable to Surcharge Purchaser Duty on any purchases of residential property. If you have any concerns that you may be a foreign person, it is imperative that you seek legal advice to ensure that any stamp duty implications are addressed prior to your purchase. This article was prepared with the assistance of Jack Harman

Recent Changes in NSW – Stamp Duty for Foreign Persons

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Foreign Buyer Stamp Duty Across Australia: Comparing NSW, ACT, QLD and WA

Foreign purchasers of residential property in Australia may be required to pay additional stamp duty depending on the state or territory in which they buy. The rules differ substantially between jurisdictions, especially following recent changes in NSW on 8 April 2024. This article explains the current position in NSW, ACT, Queensland and Western Australia in a single, streamlined overview.

Australia-Wide Summary

Jurisdiction	Surcharge Rate	Current Position
NSW	8% Surcharge Purchaser Duty	Foreign persons must pay an extra 8%. From 8 April 2024, citizens of NZ, Finland, Germany, India, Japan, Norway, South Africa and Switzerland are no longer exempt.
ACT	0% (No surcharge)	The ACT does not impose any foreign purchaser surcharge duty.
QLD	7% AFAD	Foreign individuals, corporations and trusts must pay an additional 7%. No treaty exemptions.
WA	7% Foreign Buyers Duty	Foreign individuals, corporations and trusts must pay an additional 7%. No exemptions for visa types.

NEW SOUTH WALES – Surcharge Purchaser Duty (8%)

Foreign persons buying residential property in NSW must pay an additional 8% on top of normal transfer duty.

Example:
A $1,000,000 residential purchase attracts:

Transfer Duty: $39,569
Surcharge Purchaser Duty (8%): $80,000
Total: $119,569

What changed on 8 April 2024?

Previously, citizens of nine countries were exempt due to tax treaties. These exemptions were removed. The affected nationalities are:

New Zealand
Finland
Germany
India
Japan
Norway
South Africa
Switzerland

All now pay the 8% surcharge unless they otherwise qualify as “ordinarily resident”.

Who is considered a foreign person?

You are not a foreign person if you are:

an Australian citizen
ordinarily resident in Australia (200+ days in 12 months, and no visa restriction)
a New Zealand citizen holding an SCV and meeting the 200-day rule

Most temporary, visitor, business, work and bridging visa holders are foreign persons under NSW law and must pay the surcharge. For further assistance from a local conveyancer, reach out to our Sydney conveyancing lawyers or Newcastle conveyancers.

AUSTRALIAN CAPITAL TERRITORY – No Surcharge Duty

The ACT does not impose any foreign purchaser surcharge. All buyers—local and foreign—pay the same standard stamp duty under the Duties Act 1999 (ACT).

The NSW changes on 8 April 2024 do not affect ACT transactions.

While no ACT surcharge applies, foreign buyers may still need:

FIRB approval
to comply with Commonwealth obligations, such as vacancy fees
to pay ACT land tax if the property is rented

Visa type is irrelevant for duty purposes in the ACT. For legal support from a local conveyancer, reach out to our Canberra conveyancing team.

QUEENSLAND – Additional Foreign Acquirer Duty (7%)

Queensland charges AFAD at 7% on residential property acquisitions by foreign persons, in addition to standard transfer duty.

Example (for a $1,000,000 property):

Transfer Duty: QLD scale
AFAD (7%): $70,000

Queensland was not affected by the NSW treaty change and has never offered treaty-based exemptions.

Who is a foreign acquirer in QLD?

Under the Duties Act 2001 (Qld), a foreign acquirer includes:

non-citizens who are not permanent residents
foreign corporations
foreign trusts

There is no 200-day residency test.

Most temporary, work, visitor, bridging and partner visa holders remain foreign persons until they obtain permanent residency. For legal assistance from a local conveyancer, reach out to our Brisbane conveyancing solicitors.

WESTERN AUSTRALIA – Foreign Buyers Duty (7%)

Western Australia applies a 7% Foreign Buyers Duty on residential property purchases by foreign persons.

Example (for a $1,000,000 property):

Transfer Duty: WA scale
Foreign Buyers Duty (7%): $70,000

There are no treaty-based exemptions and WA was not affected by the NSW changes.

Who is a foreign person in WA?

Under the Duties Act 2008 (WA), a foreign person includes:

individuals who are not Australian citizens or permanent residents
foreign corporations
foreign trusts

Visa type does not protect a buyer from the surcharge, all non-citizens and non-permanent residents are liable. For legal assistance from a local conveyancer, reach out to our Perth conveyancing team.

CONCLUSION

Foreign purchaser stamp duty varies widely across Australia:

NSW now imposes surcharge duty on a broader group of foreign nationals following the April 2024 changes.
ACT remains the most favourable jurisdiction, with no foreign surcharge at all.
QLD and WA impose 7% surcharges with broad foreign person definitions and no exemptions.

Because these surcharges can add tens of thousands of dollars to a property purchase, foreign buyers should seek legal advice before signing a contract to ensure they understand:

whether they are considered a foreign person
whether their visa type affects liability
additional federal requirements (such as FIRB approval)

This article was prepared with the assistance of Jack Harman.

If you have any questions please contact our Property, Corporate & Commercial Director Marissa Dimarco on 02 9264 9111