Foreign Buyer Stamp Duty Surcharge Australia 2026: NSW Rates, FIRB Rules & State Comparison

If you are a foreign national looking to purchase residential property in Australia in 2026, the stamp duty surcharge is one of the largest upfront costs you will face — and it varies significantly depending on which state you buy in. Every Australian state except the ACT and Northern Territory now imposes an additional transfer duty surcharge on foreign purchasers of residential real estate, layered on top of the standard stamp duty that all buyers pay. These surcharges range from 7% to 9% of the property’s purchase price, and they sit alongside FIRB application fees, non-resident income tax rates, and annual land tax surcharges that together create a substantial premium for foreign ownership. In New South Wales, the foreign purchaser surcharge is the highest in the country at 9% — meaning a foreign buyer purchasing a typical $1,200,000 Sydney apartment will pay approximately $108,000 in surcharge alone, on top of $48,187 in base stamp duty and a FIRB application fee of roughly $28,200. That brings total government costs to approximately $184,387 before you have even factored in your deposit, legal fees, or moving expenses. Victoria and Queensland charge 8%, Western Australia and South Australia sit at 7%, Tasmania imposes an 8% surcharge, while the ACT and Northern Territory do not levy any foreign purchaser conveyance duty surcharge at all — a fact that can swing the affordability equation dramatically. Understanding where each state stands and how FIRB rules interact with stamp duty is essential before you commit to a purchase, and this article walks through every figure you need for 2026.

Who Counts as a Foreign Buyer in Australia

For stamp duty surcharge purposes, each state revenue office applies its own definition of a foreign person, but the core framework is broadly consistent. You are generally considered a foreign buyer if you are not an Australian citizen, not a permanent resident, and — critically for NSW — not a New Zealand citizen holding a special category visa (subclass 444). The surcharge also applies to foreign corporations, foreign trusts, and in some cases to Australian citizens who are purchasing as a trustee for a foreign beneficiary. Temporary residents in Australia — those holding a 482 skilled worker visa, a 500 student visa, a 485 graduate visa, or a bridging visa linked to one of these — are classified as foreign persons for stamp duty purposes and must pay the surcharge at the time of exchange or settlement. If you subsequently obtain permanent residency, some states (including NSW) allow you to apply for a refund of the surcharge, provided you meet occupancy requirements and lodge your application within the relevant timeframe. It is important to note that the residency test is applied at the date of the contract, and state revenue offices will look at your visa status and physical presence in Australia over the preceding 12 months. Being married to an Australian citizen or permanent resident does not, by itself, exempt you from the surcharge — the assessment turns on your individual residency status under the relevant state legislation. For a deeper dive into the FIRB approval framework that applies alongside stamp duty, see our FIRB guide for foreign buyers in Sydney.

NSW Foreign Surcharge — 9% Explained

New South Wales imposes a foreign purchaser surcharge of 9% of the dutiable value of any residential property purchased by a foreign person. This is charged in addition to the standard transfer duty, which follows a progressive scale depending on the purchase price. For the 2026-27 financial year, the NSW base duty brackets are as follows: properties valued at $18,000 or less pay 1.25%; from $18,001 to $38,000, the duty is $225 plus 1.5% on the excess over $18,000; from $38,001 to $103,000, it is $525 plus 1.75% on the excess over $38,000; from $103,001 to $387,000, it is $1,662 plus 3.5% on the excess over $103,000; from $387,001 to $1,290,000, it is $11,602 plus 4.5% on the excess over $387,000; from $1,290,001 to $3,870,000, it is $52,237 plus 5.5% on the excess over $1,290,000; and above $3,870,000, the duty is $194,137 plus 7% on the excess. The 9% foreign surcharge is then calculated as a flat percentage of the full purchase price and added to whatever base duty applies.

Consider a foreign buyer purchasing a $1,200,000 apartment in Sydney. The base duty calculation for a property in the $387,001 to $1,290,000 bracket is $11,602 plus 4.5% of the amount above $387,000. The excess is $813,000, and 4.5% of that is $36,585. Adding the fixed component gives a base duty of $48,187. The foreign surcharge of 9% on the full $1,200,000 adds $108,000. The total NSW stamp duty for this foreign buyer is therefore $156,187 — compared with $48,187 for an Australian resident buying the same property. This nearly $108,000 difference is purely the cost of being a foreign purchaser in NSW, and it is a figure that does not include the separate FIRB application fee or the ongoing 4% annual land tax surcharge that foreign owners of NSW residential land must pay each year. We cover NSW stamp duty in full detail in our NSW stamp duty rates guide for 2026-27.

State-by-State Surcharge Comparison

Every Australian state and territory takes a different approach to taxing foreign buyers, and the differences can be worth tens of thousands of dollars depending on where you choose to purchase. Here is the full picture for 2026.

New South Wales applies a 9% foreign purchaser surcharge on residential property, the highest rate in the country. This rate has been in place since the NSW government increased it from 8% in prior years, and it applies regardless of whether the property is new or established, a house or an apartment, or in metropolitan Sydney or regional NSW.

Victoria charges an 8% foreign purchaser additional duty on residential property. Victoria has historically been aggressive in taxing foreign buyers, and its rate sits just below NSW’s. For a foreign buyer purchasing a $1,000,000 Melbourne apartment, the surcharge alone adds $80,000, on top of a base duty that follows Victoria’s own progressive scale.

Queensland imposes an 8% Additional Foreign Acquirer Duty, known as AFAD. Like NSW and Victoria, this is a flat surcharge on the full purchase price. A foreign buyer purchasing an $800,000 Brisbane apartment would pay $64,000 in AFAD alone, plus base Queensland transfer duty — we walk through the full calculation in the worked examples further below.

Western Australia has a 7% foreign buyer surcharge on residential property. While lower than the eastern seaboard states, WA’s surcharge combined with Perth’s lower median prices means the absolute dollar cost is often smaller, though the percentage remains material.

South Australia also levies a 7% foreign surcharge. Notably, South Australia’s first home buyer stamp duty relief does not extend to the foreign surcharge component — so even if you qualify for a base duty concession, the 7% foreign surcharge still applies to the full purchase price if you are a foreign person.

Tasmania imposes an 8% Foreign Investor Duty Surcharge on residential property, aligning it with Queensland and Victoria. While Tasmania’s residential market has a lower median price than the mainland capitals, the 8% rate means foreign buyers still face a significant premium.

The Australian Capital Territory stands out as the most foreign-buyer-friendly jurisdiction for stamp duty purposes: there is no foreign purchaser conveyance duty surcharge on residential property in the ACT. Foreign buyers pay exactly the same transfer duty as Australian residents. The ACT does impose a 0.75% per annum land tax surcharge on foreign owners, but this is an ongoing holding cost rather than an upfront purchase cost, and it does not affect the stamp duty bill at settlement.

The Northern Territory likewise imposes no foreign purchaser surcharge on conveyances. Foreign buyers in the NT pay the standard transfer duty rates without any additional premium, making it another jurisdiction worth considering if your personal circumstances allow for a purchase there.

For a broader view of how base stamp duty rates compare across all states for Australian residents, see our national stamp duty comparison.

FIRB — Foreign Investment Review Board Approval

Nearly every foreign buyer of Australian residential property must also obtain approval from the Foreign Investment Review Board before they can proceed to exchange or settlement. FIRB approval is a separate process from state stamp duty, and it carries its own fee schedule that varies by the value of the property. In 2026, properties with a purchase price of $1,000,000 or less attract a FIRB application fee of approximately $14,100. For properties valued between $1,000,001 and $2,000,000, the fee rises to roughly $28,200. Purchases in the $2,000,001 to $3,000,000 range incur a fee of approximately $56,400. These fees are subject to annual indexation each July, so the exact figure at the time of your application may vary slightly from these estimates.

Who needs FIRB approval? All foreign persons — including temporary residents, non-residents, foreign corporations, and foreign trusts — must apply unless a specific exemption applies. The key categories of property that FIRB permits foreign buyers to purchase are new dwellings (never previously occupied or sold as a residence), vacant land with a commitment to build within four years, and — for temporary residents only — one established dwelling to use as a principal place of residence, provided it is sold within three months of the visa ending. FIRB does not permit non-resident foreign buyers to purchase established dwellings, and there are restrictions on how many properties a foreign person can hold at any one time.

The FIRB application must be submitted before you enter into an unconditional contract, and approval is not automatic — the board will assess your application against the national interest test. In practice, residential applications that fall within the permitted categories are generally approved, but processing times can stretch to several weeks, and you should not assume approval is a formality. The fee is payable at the time of application and is not refundable if your application is refused. For a comprehensive walkthrough of the FIRB process, property categories, and strategic considerations for Sydney buyers, refer to our dedicated FIRB guide.

Total Cost Example: Foreign Buyer Purchasing in Sydney

To make these numbers concrete, let us walk through the complete cost picture for a foreign buyer purchasing a $1,200,000 apartment in Sydney in 2026. This is a realistic price for a two-bedroom apartment in suburbs such as Zetland, Green Square, or Parramatta.

The base NSW transfer duty is calculated in the $387,001 to $1,290,000 bracket: $11,602 plus 4.5% of the amount above $387,000. The excess is $1,200,000 minus $387,000, which is $813,000. Four point five per cent of $813,000 is $36,585. Adding the fixed $11,602 brings the base duty to $48,187. The foreign purchaser surcharge of 9% on the full $1,200,000 purchase price adds $108,000. Together, the total NSW stamp duty bill is $48,187 plus $108,000, equalling $156,187. On top of this, the FIRB application fee for a property in the $1,000,001 to $2,000,000 bracket is approximately $28,200. The combined government charges — stamp duty plus FIRB — come to roughly $184,387. This is before solicitor or conveyancer fees (typically $1,500 to $2,500), building and pest inspection, and the financial settlement costs charged by your lender.

For perspective, an Australian resident buying the same $1,200,000 Sydney apartment would pay $48,187 in stamp duty and no FIRB fee, for a total government cost of $48,187. The foreign buyer’s premium — the additional cost attributable solely to foreign status — is approximately $136,200 across stamp duty surcharge and FIRB. That is a material sum that should be factored into your deposit planning well before you begin inspecting properties. For a detailed look at how these figures change in the context of first home purchases, see our first home buyer total costs guide.

Stamp Duty + FIRB + Tax — The Full Picture

The stamp duty surcharge and FIRB fee are the most visible costs for foreign buyers, but they are not the only ones. If you purchase an investment property — or a principal place of residence while you are a non-resident for tax purposes — you will also be subject to Australian non-resident income tax rates on any rental income, and eventually to capital gains tax if you sell. For the 2026-27 financial year, non-resident tax rates are as follows: income from $0 to $135,000 is taxed at 30%, with no tax-free threshold; income from $135,001 to $190,000 attracts $40,500 plus 37% on the excess over $135,000; and income above $190,000 is taxed at $60,850 plus 45% on the excess. Non-residents do not pay the Medicare Levy. Working holiday makers holding subclass 417 or 462 visas have a separate rate schedule: income from $0 to $45,000 is taxed at 15%; from $45,001 to $135,000, the tax is $6,750 plus 30% on the excess; from $135,001 to $190,000, it is $33,750 plus 37%; and above $190,000, it is $54,100 plus 45%.

These rates matter because rental income from your Australian property will be taxed at non-resident rates unless and until you become an Australian tax resident. For a property generating $40,000 per year in gross rent, a non-resident landlord would pay $12,000 in income tax (30% of $40,000) before deducting eligible expenses such as interest, council rates, strata levies, insurance, and depreciation. After deductions, the net rental income may be lower — but the tax rate remains higher than the resident schedule, which includes a tax-free threshold of $18,200 and marginal rates starting at 16%.

Beyond income tax, foreign owners of residential land in NSW also face an annual land tax surcharge of 4% of the taxable land value, charged in addition to the standard NSW land tax. If the land value of your $1,200,000 Sydney apartment is assessed at $400,000, the foreign owner land tax surcharge alone adds $16,000 per year — a recurring cost that continues for as long as you hold the property. Queensland, Victoria, and other states have similar land tax surcharge regimes, though the rates and thresholds differ. Taken together, the stamp duty surcharge, FIRB fee, non-resident income tax, and annual land tax surcharge form a layered cost structure that foreign buyers must budget for meticulously. Speak with an Arrivau mortgage adviser for a personalised assessment of your total cost position. We respond within one business day.

Exemptions and Special Cases

Not every foreign buyer will pay the full surcharge, and several important exemptions and special cases exist that can materially change your cost position.

New Zealand citizens holding a subclass 444 special category visa are generally exempt from the foreign purchaser surcharge in NSW and several other states. Because the 444 visa is granted automatically on arrival in Australia, NZ citizens who are ordinarily resident in Australia are treated as non-foreign for stamp duty purposes — a significant advantage that does not extend to citizens of any other country.

Temporary residents purchasing a principal place of residence may be eligible for a surcharge refund if they later obtain permanent residency. In NSW, a temporary resident who buys a home to live in, pays the 9% surcharge at settlement, and subsequently becomes a permanent resident can apply to Revenue NSW for a refund of the surcharge amount, provided they occupied the property as their principal place of residence for at least 200 days in the 12 months following settlement and lodged the refund application within the prescribed period. The conditions are strict, and professional advice is essential, but the refund mechanism means the surcharge is not necessarily a permanent loss if your residency status changes.

Developers — that is, foreign corporations or individuals buying residential land for the purpose of development — may qualify for an exemption from the surcharge if they are constructing new dwellings that will be sold to the Australian market. The rationale is to avoid discouraging foreign capital that increases housing supply. The exemption is not automatic and requires an application demonstrating that the development will add to the housing stock.

New dwellings versus established dwellings matters for FIRB purposes more than for stamp duty surcharge purposes: the surcharge applies to both new and established residential property in every state that imposes one. However, FIRB restricts established dwelling purchases to temporary residents only, and only for one property to be used as a principal place of residence. Foreign buyers targeting new apartments or off-the-plan developments in Sydney avoid FIRB restrictions on established dwellings while still needing to budget for the 9% NSW surcharge.

Certain visa subclasses and humanitarian entrants may also qualify for exemption or refund of the surcharge. The rules are state-specific and evolve with government policy, so it is worth seeking advice tailored to your visa subclass and the state in which you intend to buy.

Is It Cheaper to Buy in a Different State?

Given that NSW imposes the highest foreign surcharge in Australia at 9%, many foreign buyers ask whether they are better off purchasing in a different state. The answer depends on your personal circumstances — where you plan to live, work, or invest — but the stamp duty numbers alone suggest that some jurisdictions are substantially cheaper for foreign buyers.

Consider a foreign buyer purchasing an $800,000 apartment. In NSW, the base duty is $11,602 plus 4.5% of $413,000, which equals $30,187. Adding the 9% surcharge of $72,000 brings the total NSW stamp duty to $102,187. With a FIRB fee of approximately $14,100 for a property under $1,000,000, the total NSW government cost is around $116,287.

In Queensland, the same $800,000 apartment attracts base transfer duty of $17,325 plus 4.5% of $260,000 (the amount above $540,000 under Queensland’s sliding scale), which equals $29,025. The 8% AFAD surcharge adds $64,000, bringing total Queensland stamp duty to $93,025. With the same FIRB fee of approximately $14,100, the total Queensland cost is roughly $107,125 — about $9,000 less than NSW on the same-priced property, driven primarily by the 1% lower surcharge rate.

Now consider the same $800,000 purchase in the ACT, where there is no foreign purchaser conveyance duty surcharge. The ACT applies a concessional owner-occupier scale that would place an $800,000 property at approximately $22,400 in duty. With no foreign surcharge to add, the total stamp duty is $22,400. Adding the FIRB fee of approximately $14,100 brings the total to roughly $36,500. The saving compared to NSW is approximately $79,800 — a figure that exceeds the median Australian annual salary and dramatically changes the affordability equation.

Whether relocating your purchase to another state makes sense depends on factors beyond stamp duty: property prices, rental yields, capital growth prospects, and your own connection to the city where you intend to buy. But if you are a foreign buyer with flexibility and your primary goal is to minimise government charges on entry, the ACT and NT are clear standouts, while Queensland and Victoria offer material savings over NSW. For a deeper look at how base stamp duty rates vary across the country for all buyer types, see our national stamp duty comparison, and for market context in Sydney specifically, our Sydney property market overview provides the latest data.

FAQ

Do I have to pay the foreign surcharge if I am an Australian citizen living overseas?

Generally, no. Australian citizens are not considered foreign persons for stamp duty purposes regardless of where they live, so the surcharge does not apply. However, if you are purchasing through a trust or corporate structure, you should confirm that the entity itself does not trigger foreign status under the relevant state legislation.

Can I get the foreign surcharge refunded if I become a permanent resident?

In NSW, yes — provided you meet the occupancy test (200 days in the first 12 months as your principal place of residence) and lodge the refund application within the required timeframe after obtaining permanent residency. Other states have their own refund provisions, and some do not offer refunds at all, so you must check the rules in the state where you bought.

Does the surcharge apply to commercial property?

No. The foreign purchaser surcharge in every state applies only to residential property. Purchases of commercial real estate, including offices, retail premises, industrial sites, and farmland, do not attract the residential surcharge, though they may still require FIRB approval depending on the value and nature of the acquisition.

Is the FIRB fee included in the stamp duty calculation?

No. FIRB application fees are separate from stamp duty and are paid directly to the ATO at the time of lodging your FIRB application. They are not collected by the state revenue office and are not calculated as part of your stamp duty assessment.

Data Sources

The figures in this article are drawn from the official websites and published rate schedules of the revenue offices of New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory, and the Northern Territory, as well as the Australian Taxation Office for FIRB fee schedules and non-resident tax rates. All rates are current as of July 2026 and reflect published indexation adjustments for the 2026-27 financial year. Rate brackets and surcharge percentages are subject to change by state governments and the Commonwealth in future budgets, and FIRB application fees are indexed annually each July.

Speak with an Arrivau mortgage adviser for a personalised assessment of your foreign buyer stamp duty position, FIRB approval pathway, and total cost to purchase. We respond within one business day.

Disclaimer: This article provides general information only and does not constitute legal, financial, or taxation advice. Foreign purchaser surcharges, FIRB requirements, and non-resident tax obligations are complex and depend on your individual circumstances, including your visa subclass, residency status, and the state in which you intend to purchase. You should seek independent legal and taxation advice tailored to your circumstances before making any property purchase. Data sources include state revenue office rate schedules, the Australian Taxation Office, and FIRB fee guidance, all current as of July 2026. Stamp duty rates, surcharge percentages, and FIRB fees are subject to change by government legislation.