Foreign buyers in Australia: duty surcharges, FIRB and the established home ban
The 2025 ban on foreign persons buying established homes, FIRB approval and fees, state foreign buyer duty surcharges and land tax surcharges, with a worked example.
Since 1 April 2025, foreign persons, including most temporary residents and foreign-owned companies, have generally been banned from buying established dwellings in Australia. The ban was announced as a two-year measure to 31 March 2027; the Foreign Investment Review Board website now states that it applies from 1 April 2025 to 30 June 2029, with limited exceptions. Foreign persons can still buy new dwellings and vacant residential land to build on, but they need approval before buying, pay an application fee, and pay a state duty surcharge of 7% to 9% of the price in most states on top of normal duty. Australian citizens living overseas, permanent residents and New Zealand citizens on a special category visa are not foreign persons for this purpose.
This guide is part of the cost of selling a house in Australia section. For ordinary duty, see stamp duty by state.
Who counts as a foreign person
Under the Foreign Acquisitions and Takeovers Act 1975, a foreign person includes an individual not ordinarily resident in Australia, and companies and trusts in which foreign persons hold a substantial interest. For residential land, the Foreign Investment website lists those who do not need to apply, including:
- Australian citizens, including those living abroad
- Holders of Australian permanent residency visas
- New Zealand citizens who hold, or are eligible for, a special category visa
- A foreign person buying as joint tenants with an Australian citizen, permanent resident or eligible New Zealand citizen spouse
Temporary visa holders, such as students and skilled workers on temporary visas, are foreign persons. Note that the state surcharge definitions are separate from the federal one and differ in detail; your conveyancer checks both.
The established dwelling ban
From 1 April 2025, foreign persons generally cannot acquire established dwellings. The Foreign Investment website lists limited exception categories, detailed in Guidance Note 6 (Residential land):
- Purchases for redevelopment that adds to housing supply
- Purchases supporting housing availability on a commercial scale
- Certain purchases for Australia-based employees of eligible businesses
- Build to rent developments
- Integrated tourism resorts, which are grandfathered
Before the ban, temporary residents could sometimes buy one established home to live in. That pathway is closed while the ban applies. Check the current end date with the Foreign Investment Review Board before planning a purchase.
What foreign buyers can still buy
| Property | Approval needed | Main conditions |
|---|---|---|
| New dwelling | Yes, unless the developer holds an exemption certificate covering the sale | Usually no use conditions |
| Vacant residential land | Yes | Construction generally completed within 4 years; no sale before completion |
| Established dwelling | Banned, except listed exceptions | See Guidance Note 6 |
Applications are lodged with the ATO, which administers residential foreign investment. Fees depend on the value and kind of property and are set in the Schedule of Fees; they are indexed each year. From 19 September 2026, foreign investment fees can no longer be paid by card; BPAY, direct deposit or international bank transfer are accepted.
Annual vacancy fee
A foreign owner of a dwelling that is not occupied or genuinely available for rent for at least 183 days in a year must lodge a vacancy fee return and may pay an annual vacancy fee. The ATO administers it. Budget for it if you might leave the property empty.
State duty surcharges
On top of ordinary transfer duty, most states charge a surcharge on residential property bought by a foreign person:
| State | Surcharge | Rate on dutiable value |
|---|---|---|
| NSW | Surcharge purchaser duty | 9% |
| Victoria | Foreign purchaser additional duty | 8% |
| Queensland | Additional foreign acquirer duty | 8% |
| Western Australia | Foreign transfer duty | 7% |
| South Australia | Foreign ownership surcharge | 7% |
| Tasmania | Foreign investor duty surcharge | 8% (agreements from 1 April 2020) |
| ACT | No duty surcharge | — |
| Northern Territory | No duty surcharge | — |
Most states also charge an annual land tax surcharge on foreign or absentee owners, such as NSW's surcharge land tax and Victoria's absentee owner surcharge. Rates are set in each state's land tax law and have risen in recent years; check the revenue office.
Worked example
An illustrative new $850,000 apartment in Sydney bought by a temporary resident:
| Item | Amount |
|---|---|
| Transfer duty: $11,602 + 4.5% x $463,000 | $32,437 |
| Surcharge purchaser duty: 9% x $850,000 | $76,500 |
| Total duty | $108,937 |
| FIRB application fee | Per Schedule of Fees for the price band |
The same purchase by an Australian citizen buyer would attract $32,437 of duty, or none if they qualified for the first home buyer exemption. In Melbourne, the same price would attract $46,070 of duty plus 8% x $850,000 = $68,000 of foreign purchaser additional duty, a total of $114,070.
Where a foreign person buys jointly with an Australian, surcharges usually apply only to the foreign person's share. If a couple buys as tenants in common 50/50, the NSW surcharge would be 9% x $425,000 = $38,250. Some states also offer refunds or exemptions if the buyer later becomes a permanent resident within a set time; check the revenue office.
Selling as a foreign resident
When a foreign resident sells, the buyer must withhold 15% of the price for the ATO unless a variation is granted, and the main residence exemption from capital gains tax generally does not apply. See foreign resident CGT withholding and the main residence exemption. You must also notify the Register of Foreign Ownership of Australian Assets when buying or selling residential land.
Frequently asked questions
Can a temporary resident buy a house to live in?
Not an established house while the ban applies, unless an exception applies. A temporary resident can apply to buy a new dwelling or vacant land to build on.
Do I pay the surcharge if my spouse is an Australian citizen?
Federal approval is generally not needed if you buy as joint tenants with an Australian citizen spouse. State surcharges are a separate question: they are usually charged on the foreign person's interest. Check your state's rules.
Are penalties serious?
Yes. Buying without approval or breaching conditions can lead to orders to sell, civil penalties and criminal offences under the Foreign Acquisitions and Takeovers Act.
Does the ban apply to New Zealanders?
New Zealand citizens who hold or are eligible for a special category visa are not foreign persons for residential land and do not need approval.
Official sources
- Foreign Investment Review Board — residential land guidance, the established dwelling ban and fees
- Australian Taxation Office — residential applications, vacancy fees and register of foreign ownership
- Revenue NSW — surcharge purchaser duty and surcharge land tax
- State Revenue Office Victoria — foreign purchaser additional duty
- Queensland Revenue Office — additional foreign acquirer duty
- State Revenue Office Tasmania — foreign investor duty surcharge
