Foreign Buyer Stamp Duty Surcharges in Australia 2026: State-by-State Guide for Overseas Investors

If you are an overseas investor looking to purchase residential property in Australia in the 2026-27 financial year, you will pay standard transfer duty plus a foreign buyer surcharge that ranges from 7% to 9% depending on the state — and in two jurisdictions it is zero. The surcharge is levied on the dutiable value of the property and is additional to any standard stamp duty payable. For a $1 million property, the foreign surcharge alone can add $70,000 to $90,000 to your upfront acquisition cost. Critically, the Australian Capital Territory and the Northern Territory do not impose a foreign buyer stamp duty surcharge, which creates a meaningful cost differential for investors who are flexible on location.

This guide provides the definitive foreign buyer surcharge rates for each Australian state and territory as at July 2026, explains how the surcharge interacts with standard duty and the Foreign Investment Review Board (FIRB) framework, and outlines practical considerations for overseas investors evaluating where to buy.

What Is the Foreign Buyer Stamp Duty Surcharge?

Australia’s foreign buyer stamp duty surcharge — formally called “foreign purchaser additional duty” or “foreign investor duty surcharge” depending on the state — is an additional percentage levied on top of standard transfer duty when residential property is acquired by a foreign person. The surcharge was introduced state by state between 2015 and 2018 as a measure to cool housing demand from overseas purchasers and has since become a permanent fixture of Australian property taxation.

A “foreign person” for stamp duty purposes generally means an individual who is not an Australian citizen or permanent resident, or a corporation or trust in which a foreign person holds a substantial interest. Temporary residents, including holders of the subclass 482 (TSS) visa and subclass 500 student visa holders, are typically treated as foreign persons for surcharge purposes, though some states provide partial exemptions or refunds in limited circumstances.

The surcharge applies to residential property only — commercial property, industrial land, and primary production land are generally exempt, though definitions vary by state. The surcharge is calculated on the full dutiable value (purchase price or market value, whichever is higher) and must be paid at settlement.

State-by-State Foreign Buyer Surcharge Rates: 2026-27

Below is the complete picture for each Australian jurisdiction as at July 2026, with rates confirmed against each state’s revenue office.

New South Wales (NSW): 9% Surcharge

NSW imposes the highest foreign buyer surcharge in Australia at 9% of the dutiable value. This is in addition to NSW’s standard transfer duty, which ranges from 1.25% to 7% on a progressive scale. For a foreign purchaser buying a $1.5 million residential property in Sydney, the surcharge alone is $135,000, with standard duty of approximately $63,700 — bringing total stamp duty to roughly $198,700.

First-home buyer concessions under the NSW First Home Buyers Assistance Scheme (FHBAS) are not available to foreign purchasers. The First Home Owner Grant (FHOG) of $10,000 for new homes is also restricted to Australian citizens and permanent residents.

Source: Revenue NSW, as at July 2026.

Victoria (VIC): 8% Surcharge

Victoria charges an 8% foreign purchaser additional duty on residential property. Victoria’s standard duty scale ranges from 1.4% to 6.5%, with a concessional scale for principal place of residence purchases up to $550,000. For a $1 million Melbourne property, the foreign surcharge of $80,000 sits on top of standard duty of approximately $55,000.

Victoria also imposes an absentee owner surcharge on land tax — an annual levy of 2% (rising to 4% from 2026) on the taxable value of land owned by foreign persons — which is separate from the upfront stamp duty surcharge.

Source: State Revenue Office Victoria, as at July 2026.

Queensland (QLD): 8% Surcharge

Queensland’s Additional Foreign Acquirer Duty (AFAD) is 8% of the dutiable value. Standard QLD transfer duty is relatively moderate, with rates from 1.5% to 5.75%. For a $900,000 Brisbane property purchased by a foreign buyer, AFAD adds $72,000 to standard duty of approximately $33,700.

Queensland’s generous first-home concessions — including full stamp duty exemption for new homes with no price cap — are not available to foreign purchasers. The $30,000 FHOG also requires Australian citizenship or permanent residency.

Source: Queensland Revenue Office, as at July 2026.

Western Australia (WA): 7% Surcharge

Western Australia applies a 7% foreign buyer surcharge on residential property. WA’s standard transfer duty scale runs from 1.9% to 5.15%. For a $800,000 Perth property, the foreign surcharge is $56,000 on top of standard duty of approximately $32,600.

WA’s first-home duty concession (full exemption up to $500,000 in metro areas) does not extend to foreign purchasers.

Source: WA Department of Treasury / Finance, as at July 2026.

South Australia (SA): 7% Surcharge

South Australia imposes a 7% surcharge on foreign purchasers of residential land. SA’s standard conveyance duty scale runs from 1% to 5.5%. For a $700,000 Adelaide property bought by a foreign buyer, the surcharge is $49,000 on top of standard duty of approximately $33,600.

South Australia’s first-home relief — which provides full stamp duty exemption for new homes and off-the-plan purchases with no price cap — explicitly does not cover the foreign surcharge component.

Source: RevenueSA, as at July 2026.

Tasmania (TAS): 8% Surcharge

Tasmania’s Foreign Investor Duty Surcharge (FIDS) is 8% on residential property. Standard Tasmanian transfer duty rates range from a flat $50 for properties under $3,000 up to 4.5% for properties above $725,000. For a $600,000 Hobart property, FIDS is $48,000 on top of standard duty of approximately $22,600.

An important update for FY2026-27: the 100% duty exemption on established homes up to $750,000 for first-home buyers, which was available from February 2024 to June 2026, has lapsed in its current form from 1 July 2026. The FHOG of $10,000 for new homes remains available to eligible purchasers but does not apply to foreign buyers.

Source: SRO Tasmania, as at July 2026.

Australian Capital Territory (ACT): No Surcharge

The ACT does not impose a foreign buyer conveyance duty surcharge. This is a significant point of differentiation — an overseas investor purchasing a $1 million residential property in Canberra pays the same standard conveyance duty as an Australian citizen. The ACT does levy a foreign owner land tax surcharge of 0.75% per annum, but this is an annual holding cost rather than an upfront acquisition cost.

The ACT’s Home Buyer Concession Scheme (HBCS) provides full stamp duty exemption on properties with a dutiable value up to $1,020,000, and from 1 July 2026 the income test has been removed entirely. However, eligibility for the HBCS requires the purchaser to be an owner-occupier, which may not apply to pure investors.

Source: ACT Revenue Office, as at July 2026.

Northern Territory (NT): No Surcharge

The Northern Territory also has no foreign buyer stamp duty surcharge. NT stamp duty is calculated via a formula-based approach for properties up to $525,000 and tiered rates above that. The NT’s HomeGrown Territory Grant of $50,000 for first-home buyers of new homes applies only to Australian citizens and permanent residents.

Source: NT Territory Revenue Office, as at July 2026.

FIRB Approval: A Separate Requirement

The foreign buyer surcharge operates alongside — not instead of — the FIRB application process. Most foreign persons purchasing residential property in Australia must obtain FIRB approval before acquiring an interest. FIRB application fees in 2026-27 range from $4,600 for properties under $1 million to $117,100 for properties above $40 million. FIRB fees are separate from stamp duty and the foreign surcharge and are not creditable against either.

There are limited exemptions: Australian citizens, permanent residents, and New Zealand citizens holding a Special Category Visa (subclass 444) are generally exempt from both FIRB requirements and most state foreign surcharges (though some states have specific additional rules for New Zealand citizens).

Can Foreign Buyers Claim Any Stamp Duty Relief?

In short: very limited relief is available. First-home buyer stamp duty concessions and FHOG payments are uniformly restricted to Australian citizens and permanent residents across all states and territories. Temporary residents on work or student visas are treated as foreign persons and pay the full surcharge.

The only meaningful exception is the ACT and NT’s lack of a surcharge, which by definition provides full relief from the additional impost. Some states offer refund mechanisms if a foreign purchaser subsequently becomes a permanent resident or citizen within a specified period after purchase — typically 12 months — but the criteria are strict and the process is not automatic.

Spousal arrangements are also subject to scrutiny. If one spouse is an Australian citizen or permanent resident and the other is a foreign person, the surcharge may still apply to the foreign person’s interest, depending on the state’s specific provisions. Joint purchasers should obtain legal advice before structuring a transaction.

Practical Considerations for Foreign Investors

Budget for the surcharge as an upfront cost. Unlike standard duty (which is sometimes financed as part of the mortgage), the foreign surcharge is generally an out-of-pocket settlement cost. Investors should factor this into their deposit and cash flow planning.

Compare states on total acquisition cost, not just the surcharge rate. While NSW has the highest surcharge at 9%, Queensland’s 8% rate is not far behind. However, standard duty scales, median property prices, and holding costs (land tax, council rates) vary markedly. A lower-priced property in a higher-surcharge state may still be cheaper in absolute terms than a premium property in a no-surcharge jurisdiction.

Consider the ACT and NT if location is flexible. The absence of a foreign surcharge in these two territories can represent a material saving, particularly for investors purchasing at higher price points. The annual land tax surcharge in the ACT (0.75%) is modest relative to the upfront surcharge saved.

Monitor policy changes. Foreign buyer surcharge rates have been steadily increasing since their introduction, and further changes are possible in future state budgets. Investors should check the relevant state revenue office website for the latest rates before committing to a purchase.

Data Source and Currency

All surcharge rates and duty scales in this article are sourced from the official revenue offices of each state and territory: Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office, WA Department of Treasury / Finance, RevenueSA, SRO Tasmania, ACT Revenue Office, and NT Territory Revenue Office. Figures are current as at July 2026 for the 2026-27 financial year. Rates are subject to change by state governments and may be updated outside the annual budget cycle.

Next Steps for Overseas Investors

Navigating Australia’s foreign buyer stamp duty framework requires careful cross-jurisdictional comparison and an understanding of how surcharges interact with FIRB fees, standard duty, and ongoing holding costs. An Arrivau licensed property adviser can assess your specific circumstances — including your visa status, target state, purchase budget, and investment objectives — and provide a personalised cost breakdown. Request a free initial assessment via the Arrivau website and a consultant will respond within one business day.

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Disclaimer: This article provides general information only and does not constitute financial, tax, or legal advice. Stamp duty rates, foreign surcharge rates, FIRB requirements, and eligibility criteria are subject to change. You should verify current rates with the relevant state or territory revenue office and seek independent professional advice tailored to your circumstances before making any property purchase decision.