Foreign buyers of Australian residential property face a layered cost structure: standard stamp duty, a foreign buyer surcharge that varies from 0% to 9% depending on the state, a Foreign Investment Review Board application fee, and in most states an annual land tax surcharge on ongoing ownership. On an $800,000 home the foreign buyer surcharge alone ranges from $0 in the ACT and Northern Territory to $72,000 in New South Wales, while the total stamp duty bill — standard duty plus surcharge — can exceed $115,000 in Victoria. Only the ACT and NT levy no surcharge at all. This article summarises the 2026-27 foreign buyer surcharge rates by state, explains the FIRB approval process and its cost, outlines the annual land tax surcharges that apply after purchase, and provides total upfront duty calculations for an $800,000 purchase in each jurisdiction. All figures are sourced from the relevant state revenue offices, the Australian Taxation Office, and the Foreign Investment Review Board, and are current as at July 2026.
Foreign Buyer Stamp Duty Surcharge Rates by State 2026-27
Six of Australia’s eight states and territories impose an additional stamp duty surcharge on foreign buyers of residential property. The surcharge is calculated on the dutiable value of the property and is payable on top of the standard transfer duty.
New South Wales applies the highest surcharge at 9%. On an $800,000 home the surcharge is $72,000, added to the standard duty of $31,040 for a total stamp duty bill of $103,040. NSW also imposes a land tax surcharge of 4% per annum on foreign owners of residential land.
Victoria applies an 8% surcharge, adding $64,000 to the standard duty of $43,070 on an $800,000 home, for a total of $107,070. Victoria’s absentee owner land tax surcharge increased to 4% from 2026.
Queensland applies an 8% Additional Foreign Acquirer Duty, adding $64,000 to the standard duty of $29,025 on $800,000, for a total of $93,025. Queensland also imposes a land tax surcharge of 2% per annum on foreign owners.
Western Australia applies a 7% surcharge, adding $56,000 to the standard duty of $32,313 on $800,000, for a total of $88,313.
South Australia applies a 7% surcharge, adding $56,000 to the standard duty of $38,830 on $800,000, for a total of $94,830.
Tasmania applies an 8% Foreign Investor Duty Surcharge, adding $64,000 to the standard duty of $24,247.50 on $800,000, for a total of $88,247.50.
The ACT does not impose a foreign buyer surcharge on conveyance duty. The total stamp duty on an $800,000 home is the standard investor-scale duty of approximately $27,500. The ACT does impose a land tax surcharge of 0.75% per annum on foreign owners.
The Northern Territory does not impose a foreign buyer surcharge on transfer duty. The total stamp duty on an $800,000 home is the standard duty of approximately $38,500.
Total Stamp Duty Comparison for an $800,000 Home — Foreign Buyer
The following table summarises the total stamp duty payable by a foreign buyer on an $800,000 residential purchase in each jurisdiction for 2026-27.
In New South Wales the standard duty is $31,040 and the surcharge is $72,000 for a total of $103,040. In Victoria the standard duty is $43,070 and the surcharge is $64,000 for a total of $107,070. In Queensland the total is $93,025. In Western Australia $88,313. In South Australia $94,830. In Tasmania $88,247.50. In the ACT $27,500 with no surcharge. In the NT $38,500 with no surcharge.
Victoria has the highest total stamp duty for foreign buyers at $107,070 — more than $4,000 above NSW despite NSW having the higher percentage surcharge, because Victoria’s standard duty rate at $800,000 is significantly higher. The ACT offers the lowest total at $27,500, representing a saving of approximately $79,570 compared to Victoria.
FIRB Application: Requirement, Fee, and Processing Time
In addition to state-level stamp duty, foreign buyers of Australian residential property must obtain approval from the Foreign Investment Review Board before settlement can proceed. FIRB approval is mandatory for all foreign persons purchasing residential property regardless of the purchase price or the state in which the property is located, with limited exceptions for New Zealand citizens purchasing residential property in Australia.
The FIRB application fee for residential property valued under $15 million is $7,110 as at July 2026. This fee is payable when the application is lodged and is not refundable if the application is withdrawn or unsuccessful. Standard processing takes 8 to 12 weeks from lodgement of a complete application. An expedited service is available for an additional fee of approximately $2,000 to $3,500, reducing the processing time to 2 to 4 weeks, though availability depends on case volume and complexity.
FIRB applications must be lodged before entering into an unconditional contract of sale. The application requires identity verification, proof of deposit, source of funds documentation, and details of the property being purchased. Incomplete applications are returned and must be resubmitted, adding to the processing time. Foreign buyers should engage a conveyancer or solicitor familiar with FIRB processes to ensure the application is complete and compliant on first submission.
FIRB approval is typically granted subject to standard conditions: the property must be used as the buyer’s principal place of residence or remain unoccupied pending development, and foreign buyers cannot hold established residential property as an investment for rental purposes under current FIRB policy. Breach of conditions can result in enforcement action including divestment orders.
Annual Land Tax Surcharges for Foreign Owners
Beyond the upfront stamp duty surcharge, most states impose an annual land tax surcharge on foreign owners of residential land. These surcharges are assessed each financial year on the unimproved land value and are payable in addition to any standard land tax that may apply.
Victoria’s absentee owner surcharge increased to 4% of the taxable land value from 2026, the highest in the country. NSW imposes 4% per annum. Queensland imposes 2%. The ACT imposes 0.75%. Western Australia, South Australia, Tasmania, and the NT have varying land tax surcharge regimes for foreign owners; buyers should verify the current rates with the relevant state revenue office.
These ongoing annual surcharges compound the total cost of foreign ownership over time. A foreign owner of an $800,000 home in Victoria with a land value component of $500,000 would pay an additional $20,000 per year in absentee owner surcharge alone, on top of any standard land tax and other holding costs.
Worked Example: Foreign Buyer in NSW at $800,000
A foreign buyer purchasing an existing apartment in Sydney for $800,000 in the 2026-27 financial year would face the following total upfront cost. The standard NSW transfer duty is $31,040. The foreign buyer surcharge of 9% adds $72,000. The FIRB application fee is $7,110. Conveyancing and associated costs are approximately $4,000. The total upfront cash required — excluding the deposit — is $114,150.
If the buyer provides a 30% deposit of $240,000 the total cash at settlement is approximately $354,150. If the buyer accesses lender financing the total cash requirement is the deposit plus the duty and FIRB costs, with the duty and FIRB fee typically needing to be funded from the buyer’s own cash rather than the loan.
The annual holding cost after purchase includes the NSW land tax surcharge of 4% of the land value. On a land value of $400,000 within a strata scheme this adds $16,000 per year in land tax surcharge alone.
FAQ
Q: Can a foreign buyer purchase an established home in Australia? A: Under current FIRB policy, foreign buyers are generally restricted to purchasing new dwellings, off-the-plan properties, or vacant land for development. Foreign buyers cannot purchase established residential property as an investment, and temporary residents purchasing an established home must use it as their principal place of residence and must sell it if they cease to reside in Australia. There are limited exceptions for foreign buyers who are redeveloping a property and increasing the housing stock.
Q: Is there any way to reduce or avoid the foreign buyer surcharge? A: The surcharge is applied based on the buyer’s residency status at the time of purchase, and there is no general exemption for foreign buyers in the states that impose it. Some buyers who are Australian permanent residents or citizens buying jointly with a foreign spouse or partner may be eligible for a partial exemption or refund in certain states, but this is assessed on a case-by-case basis by the relevant revenue office.
Q: Does the foreign buyer surcharge apply to off-the-plan purchases? A: Yes. The surcharge applies to the dutiable value at settlement regardless of whether the property is completed, off-the-plan, or vacant land. The off-the-plan concession available in some states may reduce the dutiable value and therefore reduce the surcharge amount, but the surcharge itself is not waived for off-the-plan purchases.
Q: Can I get the FIRB fee refunded if my purchase falls through? A: The FIRB application fee is not refundable if the application is withdrawn or if the purchase does not proceed. If a buyer changes property after FIRB approval is granted, a new application and fee are generally required. Foreign buyers should ensure their finance and contract are secure before lodging their FIRB application.
Q: Which state is best for a foreign buyer purely on stamp duty cost? A: The ACT and Northern Territory offer the lowest total stamp duty for foreign buyers at all price levels, as neither imposes a foreign buyer surcharge. The ACT’s total duty on an $800,000 home is approximately $27,500 and the NT’s is approximately $38,500, compared to $103,040 in NSW and $107,070 in Victoria. However property availability, FIRB restrictions, and ongoing land tax surcharges should also be factored into the total cost analysis.
Sources
- Foreign Investment Review Board, Residential Real Estate — Foreign Persons, firb.gov.au (current as at July 2026)
- Revenue NSW, Surcharge Purchaser Duty, revenue.nsw.gov.au (2026-27)
- State Revenue Office Victoria, Foreign Purchaser Additional Duty, sro.vic.gov.au (current as at July 2026)
- Queensland Revenue Office, Additional Foreign Acquirer Duty, qro.qld.gov.au (2026-27)
- Western Australia Department of Treasury, Foreign Buyer Duty, wa.gov.au (current as at July 2026)
- ACT Revenue Office, Foreign Ownership — Land Tax Surcharge, revenue.act.gov.au (2026-27)
- Northern Territory Territory Revenue Office, Transfer Duty, territoryrevenue.nt.gov.au (current as at July 2026)
This article provides general information only and does not constitute financial, legal, or tax advice. Foreign buyer surcharges, FIRB requirements, and land tax obligations depend on individual circumstances and are subject to legislative change. Consult a qualified conveyancer, a registered migration agent, and the Foreign Investment Review Board before making a purchase decision.