Foreign Buyer Stamp Duty Surcharge: The State-by-State Guide for Australian Expats
You are a non-citizen buying a AUD 1M property in Sydney. Standard stamp duty is AUD 45,500. Foreign buyer surcharge adds AUD 80,000. Total stamp duty: AUD 125,500.
Most Australian expats do not discover the surcharge until after they have made an offer. By then, it is too late to plan around it.
Who Pays the Surcharge?
Foreign buyer surcharge applies to non-Australian citizens purchasing established residential property. If you are an Australian citizen or PR holder, you do not pay the surcharge. NZ Special Category Visa (Subclass 444) holders may be exempt in some states (Victoria, Western Australia, South Australia) if present at settlement. Verify with your lawyer before assuming exemption.
State-by-State Rates (April 2026)
- New South Wales: 8%
- Victoria: 7%
- Queensland: 7%
- Western Australia: 7%
- South Australia: 4%
- Tasmania: 6%
- Australian Capital Territory: 5%
- Northern Territory: Variable
South Australia has the lowest rate at 4%. NSW has the highest at 8%. On a AUD 1M property, the difference between SA and NSW is AUD 40,000.
The Real Cost: AUD 1M Property in NSW
Standard stamp duty (NSW): AUD 45,500. Foreign buyer surcharge (8%): AUD 80,000. Total stamp duty: AUD 125,500. Additional cost versus an Australian buyer: AUD 80,000. This is payable at settlement and is non-negotiable.
The Legal Workaround: One on Title, Two on Loan
If you are married to an Australian citizen or PR holder, there is a legitimate structure that avoids the surcharge:
- The Australian citizen spouse holds title to the property
- Both spouses are named as borrowers on the mortgage
- Both incomes are used to service the loan
- The bank assesses both incomes for serviceability
Result: Property is held in an Australian name (no surcharge). Both incomes are included in loan assessment (full borrowing power). Saving: AUD 70-90K on a AUD 1M property.
This structure requires careful execution. You need a lawyer experienced in joint-ownership mortgages, a mortgage broker who understands how to structure the loan correctly, and confirmation from a tax advisor that the structure works for your situation. Do not attempt this without professional guidance.
When You Cannot Use the Workaround
If you are single or married to another non-citizen, the workaround does not apply. Options:
- Increase your deposit to cover the surcharge cost
- Apply for a larger loan (if lender will approve)
- Consider a state with a lower surcharge rate (South Australia is 4% vs. NSW 8%)
- Delay purchase until you obtain Australian citizenship or PR
What to Confirm Before You Make an Offer
- Are you a non-citizen? (Trigger for the surcharge)
- Is the property established or new? (Established = surcharge applies)
- What is the state-by-state rate for where you are buying?
- If married to an Australian citizen, is the One on Title, Two on Loan structure appropriate?
- How does the surcharge affect your deposit and financing?
What to Do Next
Book an Assessment Call to confirm whether you are liable for the surcharge and structure your purchase correctly. If you are married to an Australian citizen or PR holder, we will determine whether the One on Title, Two on Loan structure is right for your situation.
Disclaimer: This article is general information only and does not constitute financial or legal advice. Your individual circumstances will determine your lending options. Consult a qualified Australian expat mortgage broker before making decisions based on this content.
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