What FPAD covers
The SRO says FPAD applies to any arrangement that transfers an interest in residential property to a foreign purchaser. That includes:
- buying a residential property at auction or by private sale
- buying a non-residential property with plans to convert it to residential use
- receiving a residential property as a gift
- certain leasing arrangements
Residential property means land that can lawfully be used solely or mainly for residential purposes, such as houses, townhouses, units, flats and duplexes. It also includes land where a building will be refurbished, extended or built for residential use. Commercial residential premises, residential care facilities, supported residential services and retirement villages are outside the definition.
If you buy a non-residential property and later decide to convert it, the SRO asks you to write to it within 14 days of forming that intention.
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Who counts as a foreign purchaser
A foreign purchaser is a foreign natural person, a foreign corporation or the trustee of a foreign trust.
- Individuals. You are foreign if you are not an Australian citizen, do not hold an Australian permanent visa, and are not a New Zealand citizen who ordinarily lives in Australia for 6 consecutive months within the 12 months before or after settlement. That New Zealand test applies to settlements from 26 November 2025. Before that date, holding a Special Category visa (subclass 444) at settlement was the test.
- Pending visas. If you have applied for a visa but not yet received it, you are still a foreign natural person.
- Companies. A company is foreign if it is incorporated outside Australia, or if it is incorporated in Australia and a foreign person has a controlling interest in it (more than 50% of votes or shares, or influence the Commissioner finds over its financial and operating policies).
- Trusts. A trust is foreign if a foreign person has a substantial interest, meaning a beneficial interest of more than 50% of the trust capital or practical influence over its administration. The SRO adds that a discretionary trust with any potential foreign beneficiaries is generally treated as foreign, and that most family trusts are discretionary. The trusts guide looks at this in more detail.
The SRO tests status at settlement in most cases. If you are an Australian citizen or permanent visa holder living overseas, you are not a foreign purchaser for FPAD.
How FPAD is calculated
The dutiable value is the greater of the price you pay and the market value, and it includes GST where GST is payable. FPAD is 8% of the dutiable value of your share, calculated before concessions. Ordinary duty is worked out the normal way, with any concessions, and the two amounts are added together.
| Situation | FPAD | Source of the example |
|---|---|---|
| Sole foreign buyer, house at $1,000,000 | $80,000 | SRO example 1 |
| Foreign buyer, off-the-plan unit at $500,000, with the PPR and off-the-plan concessions | $40,000 | SRO example 2 |
| Three equal owners, $600,000 in total, one foreign: share is $200,000 | $16,000 | SRO example 4 |
The second row shows the key point: the principal place of residence concession and the off-the-plan concession can reduce ordinary duty, but not FPAD.
Worked example, ordinary duty plus FPAD. A foreign buyer pays $1,000,000 for an investment house and claims no concession. Under the SRO's general rate table, a dutiable value from $960,000 to $2,000,000 attracts duty of 5.5% of the dutiable value, so ordinary duty is $55,000. FPAD is $1,000,000 x 8% = $80,000. The total is $135,000.
If a foreign purchaser buys with a non-foreign purchaser, FPAD applies only to the foreign purchaser's interest.
Exemptions and situations where FPAD does not apply
The SRO says a transfer that is exempt from land transfer duty is also exempt from FPAD. A transfer that only qualifies for a concession can still attract FPAD.
- Spouse or partner buying a home. You may be exempt if your spouse or partner is not a foreign purchaser and you live in the property as your principal place of residence for 12 months, starting within 12 months of settlement. For this exemption the foreign person must meet the residence requirement. That differs from the first home buyer exemption, where any of the buyers can meet it.
- Relationship breakdown and wills. Where a transfer on a relationship breakdown, or under a will, is exempt from land transfer duty, FPAD does not apply either.
- Pensioners. An eligible pensioner can still claim a duty exemption when buying with a foreign purchaser, but if the pensioner later fails the residence requirement they are reassessed and the foreign purchaser pays FPAD on their share.
- Housing-supply exemption for companies and trusts. Foreign corporations and trusts that are Australian-based and add significantly to Victoria's housing stock may apply. The SRO points to the Treasurer's guidelines of 1 October 2018, and says the application should be made before completing the transaction, by the transferee, in writing to taxadvisory@sro.vic.gov.au. It is not designed for individual buyers.
Telling the SRO and paying
Everyone who acquires land in Victoria must submit a Digital Duties Form, even when the transaction is exempt. If you are a foreign purchaser, the form is where you say so. Conveyancers and solicitors lodge it through Duties Online, and self-represented parties lodge through the SRO's public system.
If you do not disclose foreign status, penalties and interest may apply. The SRO also runs compliance checks and may write to buyers asking them to confirm whether they were a citizen, permanent resident, New Zealander or foreign purchaser at settlement. It asks for passports, visa evidence and, for companies and trusts, constitutional documents and registers. A voluntary disclosure made by the due date in the letter may reduce any penalty.
Payment is by BPAY or electronic funds transfer using the details on the assessment notice. Unpaid FPAD, with penalty tax and interest, is a first charge on the land.
Getting money back
The SRO's FPAD pages do not set out a refund route for buyers whose status changes after settlement. If you were a foreign purchaser at settlement, the SRO treats FPAD as payable. The SRO also states that you cannot claim a refund if you buy non-residential land to convert and the residential premises is not built.
Separately, the SRO accepts general duty refund applications for up to 5 years after payment where too much duty was paid, for example because an available exemption was not claimed, and says to allow up to 60 days for a decision. A conveyancer or the SRO can say whether that route fits a particular case.
Keep reading
- How foreign buyer stamp duty is calculated: worked examples for NSW, Victoria and Queensland
- Absentee owner surcharge in Victoria: who is an absentee owner and what it costs
- Foreign surcharge exemptions and refunds: what each state allows
- The total cost of buying property in Australia as a foreign buyer
- Additional foreign acquirer duty in Queensland: who pays the 8% and when
- Foreign buyer stamp duty in NSW: surcharge purchaser duty explained
Frequently asked questions
What was the FPAD rate for earlier contracts?
The SRO lists 8% for contracts and agreements entered into on or after 1 July 2019, 7% from 1 July 2016 to before 1 July 2019, and 3% from 1 July 2015 to before 1 July 2016. The date of the contract or arrangement decides the rate, even if settlement falls after a rate change.
Does FPAD apply to off-the-plan purchases?
Yes. When a foreign purchaser is nominated to take a transfer under an off-the-plan contract, the SRO treats the nomination as a sub-sale event and FPAD applies. An off-the-plan concession can lower ordinary duty but is ignored when FPAD is calculated.
Does a pending visa application change my status?
No. The SRO says that if you have applied for a visa but not received it yet, you are still a foreign natural person. Its status checks ask whether you were a citizen, a permanent resident or a New Zealander with a Special Category visa when you acquired the property, usually at settlement.
Has FPAD been challenged in court?
The SRO states that, following the High Court's decision in October 2025, FPAD payable on or after 1 January 2018 is valid. For anything about a past assessment, the SRO or a lawyer can explain how that decision applies.
Is FPAD the same as the FIRB fee?
No. The FIRB fee is a federal charge for the application. FPAD is a Victorian duty paid to the SRO. Both can apply to the same purchase. See the FIRB fees and the total cost guide.
Sources
- Understanding foreign purchaser additional duty, State Revenue Office Victoria
- Calculating foreign purchaser additional duty, State Revenue Office Victoria
- Exemptions, concessions and rules for foreign purchaser additional duty, State Revenue Office Victoria
- Confirming your foreign purchaser status, State Revenue Office Victoria
- Foreign purchaser additional duty current rates, State Revenue Office Victoria
- Land transfer duty (non-principal place of residence) current rates, State Revenue Office Victoria
- Apply for a duty refund, State Revenue Office Victoria
Checked 5 October 2026.
firbapproval.com.au is an independent guide. It is not affiliated with, endorsed by or connected to the Foreign Investment Review Board, the Australian Treasury or the Australian Taxation Office. We do not lodge or process applications. Applications are made to the ATO. General information only, not legal, tax, migration or financial advice.