Rates and what they are charged on
| State | Name | Rate | Charged on | Threshold |
|---|---|---|---|---|
| NSW | Surcharge land tax | 5% (2025 onwards) | Unimproved land value of residential land | None |
| Victoria | Absentee owner surcharge | 4% (2024 onwards) | Total taxable value of Victorian land | Nil if total taxable value is under $50,000 |
| Queensland | Absentee surcharge, foreign surcharge | 3% | Taxable value above $350,000 | $350,000 |
| Tasmania | Foreign investor land tax surcharge | 2% | Assessed land value of the foreign-owned portion | None |
| ACT | Foreign ownership surcharge | 0.75% a year | Average unimproved value | None stated |
Some details sit behind the table. Tasmania's surcharge applies to land acquired by a foreign person on or after 1 July 2022, or owned by a company or trust that becomes foreign on or after that date. The ACT rate applies from 1 July 2018. The NSW rate was 4% for 2023 and 2024, and the Victorian rate was 2% from 2020 to 2023.
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Who is caught
| State | Citizens | Permanent residents | Temporary visa holders |
|---|---|---|---|
| NSW | Not foreign | Foreign if they have not been in Australia for 200 days in the calendar year | Foreign person on Revenue NSW's description; home exemption is open only to permanent, partner and retirement visa holders |
| Victoria | Not absentee | Not absentee, even if living overseas | Not absentee if they ordinarily reside in Australia |
| Queensland | Not absentee | Permanent visa holders are not absentees | A foreign individual who usually lives in Australia is assessed at individual rates |
| Tasmania | Not foreign | Not foreign (permanent visa holders) | Foreign natural persons; principal residence land is excluded from the surcharge |
| ACT | Not foreign | Not foreign | Not foreign if ordinarily resident in Australia on the ACT's factors test |
New Zealand citizens are handled differently in each place. Victoria stopped treating a Special Category visa as enough from 1 January 2026, so a New Zealand citizen who is not a permanent resident must ordinarily reside in Australia. The ACT and Tasmania exclude New Zealand citizens who hold a Special Category visa. Queensland includes New Zealand citizens in its definition of foreign individuals for land tax.
The standout difference is for permanent residents who spend a lot of time overseas. Victoria, Queensland, Tasmania and the ACT do not treat permanent residents as foreign. Revenue NSW does, if they have not been in Australia for at least 200 days in the calendar year. The Victorian guide sets out why Australian citizens and residents abroad are not caught there.
Companies and trusts are tested on ownership, and the cut-offs differ. NSW treats a company as foreign where non-resident individuals hold a substantial interest, which it sets at 20% for one person or 40% for several together. Queensland and the ACT use a controlling interest of 50% for companies and 50% of the interests for trusts. Victoria uses a controlling interest of more than 50% for corporations, and treats a trust as absentee if at least one beneficiary or unit holder is an absentee person. In some states a trust can be caught by potential beneficiaries who never receive a distribution.
What the surcharge alone costs on $600,000
To show how the structures differ, here is the surcharge only, on $600,000 of value, ignoring ordinary land tax:
| State | Working | Surcharge |
|---|---|---|
| NSW | 5% x $600,000 | $30,000 |
| Victoria | 4% x $600,000 | $24,000 |
| Queensland | 3% x ($600,000 - $350,000) | $7,500 |
| Tasmania | 2% x $600,000 | $12,000 |
| ACT | 0.75% x $600,000 | $4,500 |
This table is arithmetic on a round number. The valuation bases are different, because NSW uses unimproved value, Victoria uses taxable value, Queensland uses the Valuer-General's taxable value, Tasmania uses assessed land value and the ACT uses average unimproved value. The same property can carry different values under each system, and real assessments also include ordinary land tax. Tasmania's surcharge can apply even where the land is below the ordinary land tax threshold, and so can NSW's. Ask the relevant revenue office, or use its calculator, for an actual figure.
When status is tested
- NSW: residential land owned at midnight on 31 December each year, with a foreign status update due by 31 March for new customers, or by the assessment notice due date.
- Victoria: status at 31 December. An absentee owner must notify the SRO by 15 January of the next year.
- Queensland: land owned at midnight on 30 June.
- Tasmania: the nationality of the owners at 1 July of each financial year. A change part-way through the year does not lead to a refund or reassessment, and takes effect from the next 1 July. A change in foreign status must be notified within 30 days.
- ACT: liability arises if you are foreign on the first day of each land tax quarter, starting from the first quarter after settlement.
Places with no land tax surcharge
- Western Australia. Foreign buyers duty of 7% applies when buying residential property. The state's land tax assessment page bases liability on the value of land held in the same ownership at midnight on 30 June, with an exemption for a principal place of residence, and says nothing about foreign status.
- South Australia. RevenueSA's foreign ownership surcharge is a stamp duty surcharge of 7% on instruments executed on or after 1 January 2018. Its land tax overview page does not mention a surcharge for foreign owners.
- Northern Territory. The Territory Revenue Office overview mentions payroll tax, stamp duty, royalties and unclaimed money. It does not mention land tax or a foreign owner surcharge.
Because rules change at budget time, check the office's page for the current year before relying on a figure. Federal tax on rent and sale proceeds is separate again, and this overseas tax guide covers it.
Keep reading
- NSW land tax surcharge for foreign owners: the 5% rate, who pays and how to claim an exemption
- Absentee owner surcharge in Victoria: who is an absentee owner and what it costs
- Queensland land tax surcharge for foreign owners: absentees, foreign companies and foreign trusts
- Foreign surcharge exemptions and refunds: what each state allows
- Land tax surcharge on trusts with foreign beneficiaries: how each state looks through the trust
- Additional foreign acquirer duty in Queensland: who pays the 8% and when
Frequently asked questions
Which state has the highest land tax surcharge?
New South Wales shows the highest percentage at 5%, then Victoria at 4%. Queensland's 3% applies only to value above $350,000, so a direct rate comparison misleads. The surcharge in dollars depends on the land value, the threshold and the owner's status in each state.
Do Australian citizens living overseas pay the surcharge?
Each of the five offices lists Australian citizens as outside the foreign category. Victoria says so directly for citizens and permanent residents who live overseas. Other rules, such as federal tax on rent, are separate.
Is my home exempt?
It differs. NSW has an intended principal place of residence exemption for permanent, partner and retirement visa holders who apply and meet a 200-day requirement. Tasmania excludes principal residence land, and the ACT exempts a foreign citizen who lives in the home as their principal place of residence. Victoria does not charge the surcharge on land that is exempt from land tax. Queensland says absentees cannot claim the home exemption.
Can I be caught in two states?
Yes. Each state taxes land in its own territory under its own tests, so an owner of land in more than one state can be foreign in one and not in another.
Sources
- What is surcharge land tax, Revenue NSW
- Understanding the absentee owner surcharge, State Revenue Office Victoria
- Land tax threshold and rates for absentees, Queensland Revenue Office
- Land tax threshold and rates for foreign companies and trusts, Queensland Revenue Office
- Foreign investor land tax surcharge, State Revenue Office Tasmania
- Foreign ownership surcharge, ACT Revenue Office
- About foreign buyers duty, Western Australian Government
- Land tax assessment, Western Australian Government
- Foreign ownership surcharge, RevenueSA
- Land tax, RevenueSA
- Territory Revenue Office, Northern Territory Government
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.