Individuals, corporations and trustees of a trust can be considered foreign persons for the purposes of surcharge purchaser duty.

Generally speaking, you are not a foreign person if you are a:

• citizen of Australia;

• person who is ordinarily resident in Australia.

In general terms, you will be considered ordinarily resident in Australia and will not have to pay surcharge purchaser duty if:

• your stay in Australia is not limited as to time. That is, you are:

        - a permanent resident of Australia, or

        - the holder of a partner (provisional) visa (subclass 309 or 820)

and

• you have been in Australia for at least 200 days within 12 months before the date of the contract.

The days you enter and exit Australia count towards the 200 days total[1].

Due to international tax treaties between the Federal Government and New Zealand, Finland, Germany and South Africa, foreign persons from these countries may not be subject to surcharge purchaser duty[2].

In simple terms, individuals that are citizens of New Zealand, Finland, Germany or South Africa, acquiring residential-related property in their own capacity (i.e. not as trustees of a trust or general partners of a limited partnership), are not subject to surcharge purchaser duty due to the International tax treaties between these countries and the Federal Government of Australia[3].

Assistance with a refund

If you are a citizen of New Zealand, Finland, Germany or South Africa and have paid surcharge purchaser duty on or after 1 July 2021, you may be eligible for a refund of surcharge purchaser duty.

Contact Us

If you are a citizen of New Zealand, Finland, Germany or South Africa and you believe that you may be entitled to a refund of any purchaser surcharge duty paid on or after 1 July 2021, please contact BG Legal & Advisory, so that we can assist you to apply to Revenue NSW for a refund.

[1] https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty/surcharge-purchaser-duty/surcharge-for-individuals

[2] https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty/surcharge-purchaser-duty

[3] https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty/surcharge-purchaser-duty/surcharge-for-individuals

*Disclaimer: This is intended as general information only and not to be construed as legal advice. The above information is subject to changes over time. You should always seek professional advice before taking any course of action.*