Property Tax Update - October 2018

Recent changes to land tax and duties will impact foreign property owners.


There has been significant changes to land tax and duties regimes in most states across Australia. This will have an impact on foreign owners investing in certain property, either directly or indirectly. 

We have created the below tables to summarise the foreign owner land tax and duty surcharges that apply in Victoria, New South Wales, Queensland, South Australia (foreign purchaser duty only), Western Australia (foreign purchaser duty only) and Tasmania (foreign purchaser duty only):

Foreign owner land tax surcharges

Foreign owner duty surcharges

We note that the Victorian foreign owner land tax surcharge applies to all land (not just residential land). However, Victoria does provide an exemption for Australian based foreign owners (both Companies and Trusts) who make significant contributions to the Victorian economy.

Further, New South Wales has introduced a foreign land tax and duties surcharge exemption for Australian based property developers under certain circumstances. 

Foreign owners who fit within either of these categories should contact either Stephen O’Flynn or Abi Chellapen to discuss their ability to claim an exemption from these surcharges.

Stephen O'Flynn
Partner, Tax