Foreign Resident Stamp Duty Surcharges in Every Australian State: What Expat Buyers Are Actually Paying at Settlement in 2026 (And Which Exemptions Apply)
On top of standard transfer duty, most Australian states impose an additional surcharge on foreign purchasers of residential property. In 2026, those surcharges range from 7% to 9% of the dutiable value depending on the state, and they are payable at settlement alongside ordinary stamp duty. On a $1 million purchase, the surcharge alone can add $70,000 to $90,000 to your upfront costs before standard duty is even calculated. The Australian Capital Territory and Northern Territory are the only jurisdictions that do not levy a foreign purchaser surcharge. Certain visa holders, spouses of Australian citizens, and buyers under specific bilateral agreements may qualify for exemptions, but these rules vary sharply by state and are subject to change.
- Foreign purchaser surcharges currently range from 7% to 9% across Australian states, with ACT and NT imposing no surcharge.
- On a $1 million residential purchase, the surcharge alone can exceed $80,000 before standard transfer duty.
- Exemptions exist for certain visa categories, spouses of Australian citizens, and some New Zealand citizens, but eligibility rules differ by state and are subject to change.
- FIRB approval and stamp duty surcharges are separate obligations; meeting one does not satisfy the other.
- Borrowing power, LVR, and approval outcomes depend on individual circumstances and lender policy.
What Is the Foreign Purchaser Stamp Duty Surcharge and Who Does It Apply To?
The foreign purchaser surcharge is an additional layer of transfer duty imposed specifically on foreign persons acquiring residential property in Australia. It sits on top of standard stamp duty and is calculated as a percentage of the dutiable value of the property. The surcharge was introduced progressively across states from 2015 onward as a policy response to foreign investment in residential markets, and rates have been revised upward multiple times since. A “foreign person” for surcharge purposes is broadly defined as someone who is not an Australian citizen, not a permanent resident, and not a New Zealand citizen holding a Special Category Visa (though the NZ exemption does not apply in every state).
What Are the Current Foreign Surcharge Rates in Each State in 2026?
The surcharge rates have increased materially over the past decade, and several states raised them again in 2023 and 2024. The table below reflects the position as at 2026. Rates and policy are subject to change; always verify directly with the relevant State Revenue Office before exchanging contracts.
| State / Territory | Foreign Surcharge Rate | Applies To | Notable Exemptions |
|---|---|---|---|
| New South Wales (NSW) | 8% | Residential land | Spouses/partners of Australian citizens (conditions apply) |
| Victoria (VIC) | 8% | Residential property | Limited; some bilateral treaty nationals may apply [1] |
| Queensland (QLD) | 8% | Residential land | First home buyer exemptions exist; bilateral treaty exemptions |
| Western Australia (WA) | 7% | Residential and certain commercial | NZ citizens on Special Category Visa may be exempt |
| South Australia (SA) | 7% | Residential land | First home buyer exemptions; bilateral treaty nationals |
| Tasmania (TAS) | 8% | Residential property | Limited published exemptions |
| Australian Capital Territory (ACT) | No surcharge | N/A | N/A |
| Northern Territory (NT) | No surcharge | N/A | N/A |
Which Exemptions Can Reduce or Eliminate the Surcharge?
Building on the rates above, the harder question for most expat buyers is not the rate itself but whether they qualify for relief. Several pathways exist, though none are automatic and all require documentary evidence.
- Spouse or domestic partner exemption: In some states, a foreign purchaser buying jointly with an Australian citizen spouse or de facto partner can claim a partial or full exemption. Eligibility conditions, documentation requirements, and whether the exemption applies to the full dutiable value or only a proportional share differ by state.
- New Zealand Special Category Visa holders: NZ citizens holding a valid Special Category Visa are treated as non-foreign purchasers in some states (including WA) but not all. Never assume this exemption applies in every jurisdiction.
- Bilateral tax treaty nationals: Under certain international agreements, nationals of specific countries (notably the US, Japan, and others with relevant treaties) have historically been able to seek exemptions. As of 1 April 2025, the rules applying to foreign persons purchasing established homes changed at the federal level; the interaction with state-level surcharges remains a state-by-state determination.
- Permanent residents: Australian permanent residents are generally not subject to foreign purchaser surcharges because they are not classified as foreign persons under state duty legislation. This is a critical distinction for expats who hold PR but live overseas.
- Temporary visa holders: Most temporary visa holders are classified as foreign persons and are subject to the surcharge, subject to any applicable exemption.
How Does the Surcharge Interact With FIRB Approval?
Stepping back from state-level mechanics, a separate obligation runs in parallel: FIRB approval under the Foreign Acquisitions and Takeovers Act. FIRB and stamp duty surcharges are entirely distinct regulatory frameworks. Obtaining FIRB approval does not exempt a buyer from the foreign purchaser surcharge, and paying the surcharge does not substitute for FIRB compliance. Foreign nationals (non-Australian) buying residential property generally need FIRB approval and will also face the surcharge. Australian expats who hold citizenship or permanent residency do not require FIRB approval for most purchases and are not subject to the surcharge in their own right, though the surcharge can still apply if a foreign co-purchaser is on title.
What Does This Actually Cost at Settlement on a Real Purchase?
A related but distinct question is what the surcharge means in dollar terms. The most instructive way to illustrate this is through a concrete example. On a $1.5 million residential purchase in Victoria by a foreign purchaser with no exemption, the surcharge alone is $120,000 (8% of $1.5 million). Standard Victorian transfer duty on top of that would add further cost [1]. For a purchase in WA at the same price, the surcharge is $105,000 (7% of $1.5 million). These are not insignificant sums. They affect deposit sizing, LVR calculations, and cashflow at settlement. Expat buyers frequently underestimate acquisition costs by treating stamp duty as standard duty only, without accounting for the surcharge.
This is precisely where the integration of mortgage structuring and upfront cost planning matters. ODIN Mortgage works alongside ODIN Tax to ensure clients enter property negotiations with a clear-eyed view of total settlement costs, not just the purchase price and loan amount.
Frequently Asked Questions
Are Australian citizens living overseas subject to the foreign purchaser surcharge?
No. Australian citizens are not classified as foreign persons under state duty legislation, regardless of where they live. The surcharge does not apply to Australian citizens buying in their own name.
Does a permanent resident living overseas pay the surcharge?
No. Australian permanent residents are generally exempt from the foreign purchaser surcharge. Confirming current permanent residency status with the relevant State Revenue Office before settlement is advisable as documentary evidence is typically required.
Can I avoid the surcharge by buying through a company or trust?
No. State revenue offices apply “look-through” rules for companies and trusts. If a foreign person holds a controlling interest or beneficial ownership, the surcharge will apply. This is not a structuring workaround.
Does the foreign purchaser surcharge apply to new builds as well as established properties?
Yes. The surcharge applies to most residential property purchases by foreign persons, including new builds. Some states provide narrow concessions for certain new residential developments; these are subject to change and should be verified with the relevant State Revenue Office.
Is the surcharge tax-deductible for investment property buyers?
Stamp duty (including the surcharge) is generally not immediately deductible for investment property. It is typically added to the cost base for capital gains tax purposes. For specific tax treatment, consult a registered tax agent. ODIN Tax, part of ODIN, provides Australian tax services for expat property owners.
Do ACT and NT really have no foreign surcharge?
Correct, as at 2026. The ACT and NT do not impose a foreign purchaser stamp duty surcharge. This does not mean there are no other acquisition costs; standard transfer duty and other fees still apply.
How does the surcharge affect my borrowing power and LVR?
The surcharge increases your total funds required at settlement, which directly affects how much genuine savings or equity you need. Lenders assess LVR against the purchase price, not the total settlement cost. Borrowing power and LVR outcomes depend on individual circumstances and lender policy, which is subject to change.
About ODIN Mortgage
ODIN Mortgage is a mortgage brokerage exclusively serving Australian citizens, permanent residents, and foreign investors living overseas. Part of ODIN alongside ODIN Tax, ODIN Mortgage provides mortgage structuring, borrowing power assessments using foreign income, and remote settlement support across 40+ countries. With 2,300+ clients served, a 4.9/5 Google rating from 400+ verified reviews, and access to 40+ Australian lenders accepting foreign income, ODIN Mortgage understands the full cost of buying Australian property from overseas, including surcharges, FIRB obligations, and tax structuring, so clients can transact with clarity and confidence. ODIN Mortgage is regulated under ASIC and the National Consumer Credit Protection Act (NCCP).
Buying Australian property from overseas?
The foreign purchaser surcharge is just one piece of your settlement cost picture. ODIN Mortgage helps expat and non-resident buyers understand their total acquisition costs, borrowing capacity, and lending options across 40+ Australian lenders from wherever you are in the world.
References
- Understanding foreign purchaser additional duty | State Revenue Office (www.sro.vic.gov.au)
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