Foreign Buyer Surcharges on Australian Property: A State-by-State Breakdown
Most Australian states impose a stamp duty surcharge and an ongoing land tax surcharge on purchases by foreign persons. The rates differ significantly by state, the calculation methods vary, and several states have increased their surcharges in recent years. This guide sets out the current position in each jurisdiction.
The FIRB application fee is the federal cost of foreign investment approval. But the larger cost — often significantly larger — is the state-level stamp duty surcharge that applies on top of standard transfer duty. Most states also impose an annual land tax surcharge for foreign owners. These charges are administered by each state's revenue office, not by the federal government, and they vary considerably across jurisdictions.
The rates below reflect the position as at mid-2026. State surcharge rates have been increased repeatedly since they were introduced, and buyers should confirm current rates with the relevant state revenue office or a licensed conveyancer before exchanging contracts.
How Foreign Buyer Surcharges Work
A foreign buyer surcharge is a percentage of the property's purchase price, charged in addition to the standard stamp duty that applies to all buyers. It is not a replacement for stamp duty — it is an additional impost on top of the standard rate.
For example, in Queensland, a buyer purchasing a $700,000 residential property would pay standard transfer duty on that amount. A foreign buyer purchasing the same property would pay the same standard duty plus an 8% surcharge calculated on the $700,000 purchase price — an additional $56,000. The surcharge applies to the full purchase price, not to the amount exceeding a threshold.
Land tax surcharges are separate from stamp duty surcharges and operate differently: they are imposed annually on the taxable value of the land, and they apply on an ongoing basis for as long as the foreign person holds the property. Some states impose both a stamp duty surcharge at acquisition and a land tax surcharge each year of ownership. Others impose only one or the other.
New South Wales
New South Wales imposes both a stamp duty surcharge and an annual land tax surcharge on foreign persons purchasing residential property.
Stamp duty surcharge: 8% of the purchase price, applied in addition to standard transfer duty. For a $1,000,000 purchase, this represents $80,000 in additional duty.
Land tax surcharge: 4% per annum on the land value of the property, assessed annually by Revenue NSW. This is applied on top of the standard land tax rate and applies in every year the foreign person holds the property. On a property with a land value of $500,000, the annual surcharge would be $20,000.
New South Wales had a brief exemption for certain foreign purchasers from countries with which Australia had a free trade agreement — notably New Zealand, the United States, and South Korea — but this concession has been substantially wound back. The current position should be confirmed at revenue.nsw.gov.au before relying on any FTA-based exemption.
Victoria
Stamp duty surcharge: 8% of the dutiable value of the property, applied in addition to standard transfer duty.
Land tax surcharge: 2% per annum on the site value of the land as assessed by the Valuer-General. This is in addition to the standard land tax rate. Victoria also imposes an Absentee Owner Surcharge of 4% on foreign persons who do not ordinarily reside in Australia, making the effective annual surcharge for non-resident foreign owners higher.
Victoria also introduced a Windfall Gains Tax in 2023 on properties that benefit from rezoning, and a Commercial and Industrial Property Tax from 2024. These are not foreign-person-specific but affect the full cost of holding certain property types. Details are available at sro.vic.gov.au.
Queensland
Stamp duty surcharge: 8% of the dutiable value, in addition to standard transfer duty. Queensland introduced this surcharge in 2023, bringing it in line with the eastern seaboard states.
Land tax surcharge: 3% per annum on the taxable value of the land for absentee individuals, applied in addition to the standard land tax rate. Queensland's land tax applies on a portfolio basis — all Queensland land holdings are assessed together.
Queensland does not impose a separate "foreign person" land tax surcharge distinct from the absentee surcharge, but most foreign investors without permanent Australian residency will qualify as absentee owners. The Queensland Revenue Office (qro.qld.gov.au) publishes current rates and thresholds.
South Australia
Stamp duty surcharge: 7% of the purchase price, in addition to standard conveyance duty.
Land tax surcharge: A foreign ownership surcharge of 0.5% per annum applies to foreign persons on top of the standard land tax rate. South Australia's surcharges are lower than the eastern states, which can make it comparatively more cost-effective for foreign buyers despite having a duty surcharge.
Current rates are available from RevenueSA at revenuesa.sa.gov.au.
Western Australia
Western Australia does not currently impose a stamp duty surcharge on foreign buyers of residential property. This makes Western Australia structurally different from the eastern states and is a relevant consideration for foreign investors comparing acquisition costs across jurisdictions.
Land tax: Standard land tax applies to all landowners, but Western Australia does not impose a separate foreign person land tax surcharge as at mid-2026.
The Western Australian Government has periodically considered introducing a foreign buyer surcharge. Buyers should confirm the current position at wa.gov.au/organisation/department-of-finance/state-revenue before proceeding, as this position may change with future budgets.
Australian Capital Territory
The ACT applies a foreign investor duty surcharge of 7% on residential property purchases by foreign persons, in addition to the ACT's conveyance duty. The ACT's standard duty rates are calculated differently from other states — the ACT uses a land value basis through its Lease Variation Charge system. Details are available from the ACT Revenue Office at revenue.act.gov.au.
Tasmania and the Northern Territory
Tasmania and the Northern Territory currently do not impose foreign buyer stamp duty surcharges on residential property, making them similar to Western Australia in this respect. Standard duty and land tax apply to all buyers. Rates are available from the State Revenue Office of Tasmania and the Northern Territory Treasury respectively.
Comparing the Total Acquisition Cost Across States
The following is an illustrative comparison of the additional costs a foreign buyer would incur purchasing a $700,000 new residential property across selected states, based on mid-2026 surcharge rates. Standard transfer duty is excluded from this comparison as it applies to all buyers — only the foreign-person-specific additional costs are shown.
| State | Duty Surcharge (on $700,000) | Annual Land Tax Surcharge (indicative) |
|---|---|---|
| New South Wales | $56,000 (8%) | ~4% of land value pa |
| Victoria | $56,000 (8%) | ~2–4% of site value pa |
| Queensland | $56,000 (8%) | ~3% of taxable value pa |
| South Australia | $49,000 (7%) | ~0.5% of land value pa |
| Western Australia | Nil | Standard land tax only |
| ACT | $49,000 (7%) | Refer revenue.act.gov.au |
| Tasmania | Nil | Standard land tax only |
These figures are illustrative only and do not constitute professional advice. Duty is calculated on the full purchase price and the rates shown are surcharge only. Standard transfer duty, FIRB application fees, legal costs, and lender fees are additional. Individual circumstances and the precise land valuation for land tax purposes will affect actual costs.
Off-the-Plan Concessions
Several states offer stamp duty concessions for off-the-plan purchases that can reduce the duty base — and therefore the surcharge — for qualifying buyers. In Queensland, for example, off-the-plan concessions reduce the dutiable value to the land value plus the construction cost incurred at the time of contract, rather than the full contract price. This can materially reduce the duty and surcharge payable.
Whether these concessions apply to foreign buyers and to what extent varies by state and by the specific concession. This is a question for a Queensland or state-specific conveyancer before contracts are signed, not after.
Implications for Investment Strategy
The differential between states — particularly the absence of a duty surcharge in Western Australia and Tasmania — creates a genuine cost difference for foreign buyers that should be factored into any cross-state investment comparison. A $56,000 stamp duty surcharge saving on a $700,000 property in Western Australia versus New South Wales is a direct improvement in the investor's return on equity from day one.
The ongoing land tax surcharge is equally significant. A 4% annual land tax surcharge in New South Wales, applied to a $500,000 land value, represents $20,000 per year — a recurring cost that compounds over the holding period and materially affects the net yield of the investment.
This does not mean foreign investors should avoid high-surcharge states. Market fundamentals — supply, demand, rental yields, capital growth trajectory — remain the primary investment driver. But surcharge costs are real and quantifiable, and they belong in the financial analysis before purchase, not as an afterthought.
Key Government Sources
- Revenue NSW — revenue.nsw.gov.au (NSW foreign buyer surcharge)
- State Revenue Office Victoria — sro.vic.gov.au (VIC foreign purchaser additional duty)
- Queensland Revenue Office — qro.qld.gov.au (QLD additional foreign acquirer duty)
- RevenueSA — revenuesa.sa.gov.au (SA foreign ownership surcharge)
- Department of Finance WA — State Revenue — wa.gov.au (WA — confirm no surcharge position)
- ACT Revenue Office — revenue.act.gov.au (ACT foreign investor duty surcharge)