Foreign buyer surcharge

Most Australian states apply an additional foreign person duty surcharge on top of regular stamp duty when the buyer is a foreign person (which has a precise legal definition, but generally non-citizens and non-permanent-residents). The surcharge runs roughly 7-8% on top of the existing duty (NSW 8%, VIC 8%, QLD 7%, WA 7%, SA 7%, TAS 8%). Several states also apply a foreign owner land tax surcharge of around 2-4% annually. Combined, this puts foreign buyers at a significant cost disadvantage versus locals. FIRB approval is also required for most foreign property purchases. Australian citizens and permanent residents are not foreign persons for these rules; some temporary visa holders are.