Who counts as a foreign buyer. You qualify as a foreign buyer if you lack Australian citizenship, aren't a New Zealand citizen with a Special Category Visa, or don't hold permanent residence status.
FIRB approval is required. Foreign buyers require Foreign Investment Review Board (FIRB) approval when purchasing property.
Foreign purchaser additional duty rates (Victoria). Contracts entered before 1 July 2016: 3%. From 1 July 2016 onwards: 7%. From 1 July 2019 onwards: 8%.
Occupancy requirement. Properties must be occupied or genuinely available for rent for at least half of the year, or face annual ATO fees.
Register with the ATO. Acquisitions must be registered within 30 days of settlement on the Register of Foreign Ownership of Australian Assets.
Protect yourself in the contract. Insert a special condition in the contract to allow you to terminate if you are unable to obtain FIRB approval before settlement, to avoid financial loss.
Penalties. Purchasing without approval may result in significant monetary penalties as well as a forced sale.
Absentee owner land tax surcharge — 4%. Victoria also charges an absentee owner land tax surcharge of 4% (from the 2024 year) on land held by foreign (absentee) owners, payable annually on top of any standard land tax.
Foreign buyer duties and obligations in Victoria at a glance
| Requirement | What it is | Timing |
|---|---|---|
| FIRB approval | Foreign buyers need Foreign Investment Review Board approval to purchase | Before you sign unconditionally — protect yourself with a FIRB special condition |
| Standard transfer duty | The normal Victorian duty on the purchase | At settlement |
| Foreign purchaser additional duty | An extra 8% (for contracts from 1 July 2019) | On top of standard duty, at settlement |
| Occupancy | Occupy it, or genuinely make it available for rent, for at least half the year — or face annual ATO fees | Ongoing |
| ATO register | Register the acquisition on the Register of Foreign Ownership of Australian Assets | Within 30 days of settlement |
| Absentee owner land tax surcharge | An extra 4% (from 2024) | Annual, while absentee-owned |
General information only — not legal advice; foreign-ownership rules and duty rates change. Confirm the current figures with the State Revenue Office and your conveyancer before you rely on them.