Foreign Buyer Stamp Duty Surcharges: A State-by-State Breakdown
On top of standard transfer duty, overseas buyers pay an additional foreign purchaser surcharge that varies by state. Here's how the surcharges work and why they can change your suburb shortlist.
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The Extra Layer Overseas Buyers Pay
Every Australian property buyer pays transfer (stamp) duty. Foreign purchasers pay an additional surcharge on top — and it is significant. Depending on the state, the foreign purchaser duty surcharge typically sits in the range of around 7–8% of the property value, charged in addition to standard duty. On a $900,000 purchase, that surcharge alone can add tens of thousands of dollars to your settlement costs.
Because each state and territory sets its own rate and rules, the total acquisition cost of an identical-priced property can differ meaningfully across borders. Always confirm the current rate with the relevant state revenue office before you budget.
How the States Compare
New South Wales, Victoria, and Queensland all levy a foreign purchaser surcharge on residential acquisitions, and these three markets are where most overseas investment is concentrated. Western Australia, South Australia, Tasmania, the ACT, and the Northern Territory each take their own approach, with some applying lower rates or different thresholds. Rather than memorise figures that change with each state budget, treat the surcharge as a line item you confirm per-state during due diligence.
For market context on which states are seeing the strongest fundamentals, CoreLogic and realestate.com.au publish regular capital-city comparisons.
Surcharge Land Tax Too
The surcharge story doesn't end at purchase. Several states also charge foreign owners an annual surcharge land tax on top of ordinary land tax. This is an ongoing holding cost that compounds every year you own the asset, so it matters most for long-term investors. Factor it into your yield calculations, not just your purchase budget.
Why This Changes Your Shortlist
Surcharges effectively raise your entry price. That makes value-for-criteria more important than ever — you want a suburb where growth fundamentals and rental demand justify the higher cost base. A 7–8% surcharge is easier to absorb in a suburb with genuine infrastructure-driven growth than in a flat market.
Use Compare My Suburb to rank your candidate suburbs across states by the criteria that drive long-term value — transport, CBD distance, schools, and price — so the surcharge buys you into a genuinely strong location.
The Bottom Line
The foreign purchaser surcharge is unavoidable, but it is predictable. Confirm the current rate and any surcharge land tax with the state revenue office, build both into your numbers, and let data — not just headline price — decide which side of a state border your money works hardest.
Resources for overseas & Asian investors
Trusted portals and official sources to research, finance, and plan your Australian property purchase from overseas.
