Approval fees, state surcharges and ongoing charges — a practical guide for foreign buyers in Australia.
ATO Approval Fees (FIRB Residential Applications)
Residential application fees are tiered to the property price. The ATO maintains the current schedule — always check the live table on the ATO website before contracting. Applications are generally considered after full payment of the fee, with typical consideration taking up to 30 days once paid. Plan this into your contract timeline.
ATO Vacancy Fee (Ongoing)
If you're a foreign owner of residential real estate, you must lodge a vacancy fee return each year. The fee is determined based on the relevant "vacancy year." Check the ATO's website for current rates and worked examples.
State and Territory Surcharges
Always confirm the live rate with the relevant state revenue office — percentages can change. Current headline rates:
- NSW: Surcharge purchaser duty (on top of transfer duty) plus surcharge land tax for foreign owners.
- VIC: Foreign Purchaser Additional Duty (FPAD) currently 8%, plus Absentee Owner Surcharge 4% from the 2024 land tax year.
- QLD: Additional Foreign Acquirer Duty (AFAD) 8% on residential land.
- WA: Foreign Buyers Duty 7% on residential property acquisitions by foreign persons.
- SA: Foreign Ownership Surcharge 7% on residential land acquisitions.
- TAS: Foreign Investor Duty Surcharge (FIDS) and Foreign Investor Land Tax Surcharge (FILTS) — check SRO Tasmania for current rates.
- ACT: Foreign ownership land tax surcharge in addition to normal land tax.
- NT: No foreign buyer surcharge, but standard stamp duty applies.
Illustrative Example (Victoria)
A foreign person purchases a new apartment in Victoria for AUD $900,000. Costs to factor in:
- ATO FIRB application fee — see current tier for properties under $1M on the ATO website
- Standard transfer duty — calculated per VIC scale
- FPAD — 8% of the dutiable value component applicable to the foreign purchaser
- Absentee Owner Surcharge (land tax) — 4% if the owner is an absentee for VIC land tax purposes
These costs stack up quickly. Getting accurate figures before signing is essential — not an afterthought.
⚠️ These rates can change. Always verify current figures directly with the ATO and your state revenue office before entering into any contract.
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