Foreign Buyer Stamp Duty Australia 2026: Surcharge by State and FIRB Fees

Foreign Buyer Stamp Duty Australia 2026: Surcharges, FIRB Fees, and What You Can Buy

Foreign purchasers buying residential property in Australia face a layered system of costs in 2026–27. On top of standard state and territory conveyance duty, most jurisdictions impose a foreign purchaser surcharge ranging from 7% to 9% of the property’s dutiable value. The federal government adds a separate Foreign Investment Review Board (FIRB) application fee, which starts at $14,100 for properties valued up to $1 million and rises on a sliding scale. There are also restrictions on what type of property foreign buyers may acquire — generally limited to new dwellings or vacant land, with established homes reserved for Australian citizens and permanent residents.

Two jurisdictions — the ACT and Northern Territory — impose no foreign conveyance surcharge at all, making them markedly more affordable at the point of purchase. This article sets out the surcharge rates for each state and territory, explains the FIRB fee structure, and outlines the purchasing restrictions foreign buyers must navigate.

Foreign Purchaser Surcharge by State and Territory

The foreign purchaser surcharge is an additional percentage applied to the dutiable value of residential property. It is payable on top of the standard conveyance duty and, where applicable, is collected at settlement. Here is the surcharge for each jurisdiction as at July 2026:

• New South Wales: 9% — the highest in Australia. A foreign buyer purchasing a $1 million Sydney apartment pays $90,000 in surcharge alone, on top of approximately $40,000 in standard transfer duty, for a total stamp duty bill of roughly $130,000.
• Victoria: 8%. Victoria was one of the first states to introduce a foreign surcharge and has progressively increased it. On a $1 million Melbourne property, the surcharge adds $80,000 to standard duty of around $55,000, totalling approximately $135,000.
• Queensland: 8%. Queensland’s surcharge aligns with Victoria’s rate. The state’s relatively low standard duty partly offsets the impact, but the combined cost on a $1 million Brisbane property still reaches roughly $124,000.
• Western Australia: 7%. WA’s surcharge was increased to 7% in recent years. Combined with standard transfer duty, a foreign buyer purchasing a $700,000 Perth property would pay approximately $27,000 in standard duty plus $49,000 in surcharge — a total of around $76,000.
• South Australia: 7%. SA’s surcharge rate matches WA’s. On a $500,000 Adelaide property, the foreign surcharge adds $35,000 to the roughly $21,330 in standard duty.
• Tasmania: 8%. Known as the Foreign Investor Duty Surcharge (FIDS), Tasmania’s surcharge is applied to the dutiable value of residential property. On a $500,000 Hobart property, FIDS adds $40,000 to standard transfer duty of approximately $16,748.
• Australian Capital Territory: 0%. The ACT imposes no foreign purchaser conveyance duty surcharge. Foreign buyers pay the same conveyance duty as Australian residents. The ACT does levy a foreign owner land tax surcharge of 0.75% per annum on the unimproved land value, but this is an annual ongoing charge, not an upfront stamp duty cost.
• Northern Territory: 0%. The NT, like the ACT, has no foreign purchaser conveyance duty surcharge. A foreign buyer purchasing a $600,000 Darwin property pays exactly the same transfer duty as a local resident.

The difference between buying in a zero-surcharge jurisdiction (ACT or NT) versus the highest-surcharge jurisdiction (NSW at 9%) is enormous. On a $1 million property, the foreign buyer saves $90,000 upfront by purchasing in Canberra instead of Sydney, purely from the surcharge difference.

Federal FIRB Application Fees

The Foreign Investment Review Board application fee is a federal requirement that applies regardless of which state or territory the property is in. Foreign buyers must obtain FIRB approval before acquiring residential real estate, and the application incurs a non-refundable fee based on the property’s purchase price. As at July 2026, the fee schedule is:

• Properties valued at $1 million or less: $14,100
• Properties valued at $1,000,001 to $2 million: $28,300
• Properties valued at $2,000,001 to $3 million: $56,600
• Properties valued at $3,000,001 to $4 million: $84,800
• Properties valued at $4,000,001 to $5 million: $113,100
• Higher tiers increase proportionally, with fees reaching into the hundreds of thousands for premium properties

The FIRB fee is payable at the time of application and is separate from — and in addition to — all state and territory stamp duty and surcharges. Approval typically takes 30 days from lodgement of a complete application, though timelines can extend during peak periods. Purchasing without FIRB approval where it is required can result in penalties and forced divestment.

For a foreign buyer acquiring a $900,000 new apartment in Brisbane, the total government charges at settlement would be: approximately $37,000 in standard QLD transfer duty, $72,000 in foreign surcharge (8%), and $14,100 in FIRB fees — a combined $123,100 in taxes and fees on top of the $900,000 purchase price.

What Can Foreign Buyers Actually Purchase?

Foreign non-residents are generally restricted in the type of residential property they can buy in Australia:

• New dwellings: Foreign buyers may purchase new homes and apartments that have not been previously occupied or sold as a residence. This is the primary pathway for foreign residential investment. Off-the-plan purchases are permitted and actively encouraged in many developments.
• Vacant land: Foreign buyers may purchase vacant residential land, provided they construct a dwelling on it within a specified timeframe (typically four years from the date of FIRB approval).
• Established dwellings: Generally prohibited for foreign non-residents. Exceptions exist for temporary residents (who may purchase one established dwelling as their principal place of residence, with a requirement to sell when they leave Australia) and for redevelopment purposes (where the existing dwelling is demolished and replaced with multiple new dwellings).
• Commercial and industrial property: Different rules apply; many commercial properties do not require FIRB approval depending on value thresholds and sensitivity.

Temporary residents holding a visa that permits stays of more than 12 months have additional flexibility — they can generally purchase one established dwelling to live in and new dwellings for investment, though state surcharges still apply.

Combined Cost Comparison: Foreign Buyer at $800,000

To illustrate how these layers interact, consider a foreign buyer purchasing an $800,000 new apartment in four different locations:

Sydney (NSW): Standard duty ~$36,000 + 9% surcharge $72,000 + FIRB fee $14,100 = ~$122,100 in government charges. Standard duty is calculated from the NSW scale at the $800,000 level.

Melbourne (VIC): Standard duty ~$43,000 + 8% surcharge $64,000 + FIRB fee $14,100 = ~$121,100.

Brisbane (QLD): Standard duty ~$29,000 + 8% surcharge $64,000 + FIRB fee $14,100 = ~$107,100. Queensland’s lower standard duty provides a meaningful saving.

Canberra (ACT): Standard concessional duty + 0% surcharge + FIRB fee $14,100. Even at investor rates, the total is substantially lower — likely ~$40,000–$50,000 total government charges. The absence of a conveyance surcharge saves the buyer between $56,000 and $72,000 compared with the surcharge states.

Darwin (NT): Standard duty ~$38,000 + 0% surcharge + FIRB fee $14,100 = ~$52,100. Like the ACT, the NT’s zero surcharge produces total costs far below the eastern states.

Strategic Considerations for Foreign Buyers

Foreign buyers concerned about stamp duty costs should consider these factors:

• The ACT and NT offer the lowest total purchase costs due to the absence of conveyance surcharges. For a foreign buyer with geographic flexibility, these jurisdictions can save tens of thousands of dollars upfront.
• Off-the-plan purchases in many states attract stamp duty concessions or allow the buyer to pay duty only on the land value (not the construction cost), further reducing the base on which the surcharge is calculated. Victoria, in particular, has historically offered significant off-the-plan concessions, though rules should be confirmed for 2026–27.
• The FIRB fee is a fixed federal cost that cannot be avoided; it applies regardless of the state chosen.
• Foreign buyers should also consider annual land tax surcharges in states that impose them (NSW: 4%, VIC: 2%–4% depending on absentee owner status, QLD: 2%, ACT: 0.75%, etc.) — these are ongoing holding costs not covered in this article.

For state-by-state breakdowns of standard stamp duty, see our individual guides for NSW, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT, and the Northern Territory. For first-home buyer costs, see our comprehensive first-home buyer cost guide.

Arrivau’s licensed consultants can provide personalised guidance on foreign buyer stamp duty and FIRB compliance within one business day.

Disclaimer: This article provides general information only and does not constitute financial, tax, or legal advice. Stamp duty rates, grants, and concessions may change. Readers should confirm current rates with the relevant state Revenue Office or a licensed professional before making property decisions. Data current as at July 2026.