How and when do you lodge the annual vacancy fee return?

Who has to lodge

The ATO says a return is required from anyone who made a foreign investment application for residential property after 7:30 pm AEST on 9 May 2017, or who bought under a developer's new or near-new dwelling exemption certificate that the developer applied for after that time. Some specifics:

• Joint tenants lodge one return between them.
• Tenants in common each lodge their own return.
• Several dwellings on one site: a return is needed for each new dwelling constructed.
• A co-owner who is not a foreign person has no vacancy fee liability (Treasury's Guidance Note 6).

Some situations mean no return is needed. If the dwelling has been sold or otherwise legally transferred (including on the owner's death), or the owner is no longer a foreign investor, the ATO says details must be updated in Online services instead. An owner who holds vacant land with no dwelling built yet also does not lodge, and the ATO adds that a return is required once a dwelling is constructed.

When the return is due

A vacancy year is each successive period of 12 months from the occupation day, while the owner continuously holds the interest. Under section 115C of the Foreign Acquisitions and Takeovers Act 1975, the occupation day is the first day the owner acquires the right to occupy an established dwelling. For a new dwelling it is the later of the day a certificate of fitness for occupancy is issued and the first day the owner has the right to occupy.

The return is due within 30 days after the vacancy year ends, and the ATO says the first day of that 30-day period is the day after the vacancy year ends. The ATO also says it generally emails a reminder if the owner's details in Online services are current.

The last two rows apply the same rule with different dates. Each following vacancy year ends one year later.

How to lodge, step by step

The ATO's instructions, on pages last updated between March 2025 and March 2026, run as follows:

1. Register first. The owner needs a myID and a one-off registration for Online services for foreign investors. A representative can lodge, but only after the owner has registered and authorised them.
2. Have the asset registered. From July 2023, registering a residential dwelling in Online services produces an asset identification number (asset ID), which the return needs. If the owner has not received one, the ATO says to register the asset first. For the register itself, see the Register of Foreign Ownership page.
3. Open the return. Choose Lodgments, then Vacancy fee return, or use the "Lodge or pay vacancy fee return" quick link, then select Add and Start.
4. Complete it in one session. The ATO says progress cannot be saved.
5. Submit. A message shows whether a vacancy fee is payable. The return can be printed or saved as a PDF.

If the occupancy date is not listed against the asset, the ATO says the owner needs to contact it with the date first. Online services logs users out after 25 minutes of inactivity, which matters because the return cannot be saved part-way.

What the return asks

The ATO says the return collects:

• the vacancy return year, which is the year in which the vacancy year ends (a vacancy year from 2 February 2022 to 2 February 2023 is return year 2023);
• the number of days the property was residentially occupied, as more or less than 183; and
• the occupancy date held on the asset.

Owners may need to back up the answers. Treasury lists tenancy agreements, tax returns or notices of assessment, a title search, bank statements, insurance certificates and evidence the home was available for rent. An owner who is exempt still lodges and declares the exemption. See what counts as occupied and the exemptions. Records have to be kept for at least five years after the end of each vacancy year, in English or readily convertible into English.

After lodging, and when lodging is late

After lodgment the owner is told whether a fee is payable and gets a notice by email giving the reason, amount, payment details and due date. The ATO's page says the fee can be paid when lodging or within 30 days of lodging; the Act requires the notice to set a due date at least 21 days after the notice is given. The notice is the document to follow. The amount is covered in the vacancy fee amount guide. The ATO says it grants waivers or refunds only in limited circumstances, expects all returns to be lodged before a waiver request, and its decision is final.

Failing to lodge on time has several consequences under the Act:

• Deemed liability. The owner is taken to owe the fee for that year whatever the days occupied (section 115D(3)), and the exemptions in Regulation 43D do not apply.
• Civil penalty. Up to 500 penalty units, which is $182,000 at the $364 unit value set from 1 July 2026. The instrument that sets the value says it applies to offences committed on or after that date, so check the unit value for earlier conduct.
• Infringement notices. Treasury's compliance note for residential land lists, for individuals, 12 penalty units ($4,368) where the person self-discloses, 60 ($21,840) where the land value is under $5 million and 300 ($109,200) where it is over $5 million.
• Other contraventions. A false or misleading return, or failing to keep records, also carries up to 500 penalty units each.
• Recovery. An unpaid fee can be recovered as a debt or secured by a charge over Australian land.

Treasury says anyone who thinks they may have breached the law is encouraged to self-disclose, and lower penalties may apply. For an overview of how the fee works, see the vacancy fee page.

Frequently asked questions

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.