FIRB approval and what you can buy. Foreign persons must obtain FIRB approval before purchasing residential real estate in Queensland, regardless of property value. Approvals typically cover only vacant land for development, residential development, or newly constructed dwellings. Foreign persons, including temporary residents, cannot buy established dwellings while the federal ban applies (in place until at least 30 June 2029), with only limited exceptions for investments that significantly increase housing supply. Application fees are non-refundable if the contract doesn't settle.
Additional Foreign Acquirer Duty (AFAD), 8%. Foreign buyers in Queensland pay an extra 8% transfer duty (from 1 July 2024) on the purchase price, in addition to standard transfer duty. AFAD applies to foreign acquirers purchasing AFAD residential property and is an additional duty imposed on the transaction's dutiable value.
Change of status within three years. If your status changes within three years of the transaction, the Commissioner must reassess and impose AFAD. Notify the Commissioner promptly, as strict timeframes apply, to avoid penalty duty and interest.
Land tax surcharges, 3%. Queensland charges two 3% land tax surcharges on top of standard land tax, each on taxable land of $350,000 or more: foreign companies and trustees of foreign trusts pay the foreign surcharge, and foreign individuals who do not usually live in Australia pay the absentee surcharge. A foreign individual who lives in Australia pays neither.
Protect yourself in the contract. If you fail to obtain approval before you obtain title to the property, the Australian Government may impose significant penalties, such as issuing infringement notices and forcing the sale of the property. Insert a special contract condition allowing termination if FIRB approval cannot be obtained before settlement.
Register with the ATO. Foreign property owners must register their acquisition with the ATO's Register of Foreign Ownership of Australian Assets within 30 days of settlement.
Vacancy fees. If the property isn't occupied or available for rent at least half the year, the ATO may charge an annual vacancy fee, double the foreign investment application fee, for vacancy years starting on or after 9 April 2024.
QLD foreign-buyer costs at a glance
| Item | Rate / requirement | Timing |
|---|---|---|
| FIRB approval | Required to purchase | Before you sign unconditionally, using a FIRB special condition |
| Standard transfer duty | Normal QLD rates | At or near settlement |
| Additional foreign acquirer duty (AFAD) | 8% (from 1 July 2024) | On top of standard duty |
| Land tax surcharge (foreign companies and trusts; absentee individuals) | 3% | Annual, on taxable land of $350,000 or more |
| Titles Queensland | Form 25 foreign ownership notification lodged with the transfer | At settlement |
General information only, not legal advice. Rates change, so confirm current figures with the Queensland Revenue Office and your conveyancer.
