NSW Budget | foreign owner duty & land tax surcharges

NSW Budget | foreign owner duty & land tax surcharges


On 18 June 2024, the New South Wales Government released its 2024-25 budget with plans to increase the foreign purchaser duty surcharge and foreign owner land tax surcharge.

From the 2025 land tax year (1 January 2025), the NSW Government will increase the rate of the foreign purchaser duty surcharge from 8% to 9%.

The foreign resident duty surcharge is levied on foreign buyers of residential property in NSW, with various exemptions available. This includes Australian incorporated property developers (and trustee companies) being able to seek a refund of the surcharge paid within 12 months of a sale of a home on residential land or sale of a residential lot, if the land has been held for less than 10 years.

From January 2025, the NSW Government will also increase the surcharge rate of land tax applied in addition to land tax rates for foreign persons, foreign companies, trustees of foreign trusts, from 4% to 5%.

Existing exemptions continue to be available from the land tax surcharge, including Australian developers being able to seek a refund (where eligibility requirements are met).

For further information we have released a summary about the different state foreign owner surcharge land taxes and duties.

How can SW help?

SW has considerable experience in assisting foreign investors to determine the most favourable state or territory to invest in property developments. This includes advising on refunds or exemptions for property developers, build-to-rent concessions, the availability of exemptions and ex gratia relief from surcharges, and the specific advantages and disadvantages of different property assets.

If you would like any further information, please contact a member of the SW tax team.


Robert Parker

Eric Lay

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