Increases to surcharges for foreigners in NSW

On 18 June 2024, the NSW Government announced its 2024-25 budget, which includes plans to raise the foreign purchaser duty surcharge and the foreign owner land tax surcharge.

Starting from 1 January 2025, for the 2025 land tax year, the foreign purchaser duty surcharge will increase from 8% to 9%. This surcharge applies to foreign buyers of residential property in NSW, though certain exemptions are available. For example, Australian-incorporated property developers and trustee companies may be eligible for a refund of the surcharge within 12 months of selling a home on residential land or a residential lot, provided the land has been held for under 10 years.

Additionally, from January 2025, the NSW Government will raise the land tax surcharge rate for foreign persons, foreign companies, and trustees of foreign trusts from 4% to 5% on top of standard land tax rates. Exemptions remain in place, including the option for Australian developers to claim a refund if they meet the eligibility criteria.

For specific details on how these surcharge increases might affect your transaction, please contact one of our people.

Ron Zucker 0410 590 111

Eollyn Cortes 0478 727 395

Sagang Chung 0431 435 333

Julia Zou 0426 670 202