Who has to lodge a return
Every foreign person who made a foreign investment application for residential land on or after 7:30pm AEST on 9 May 2017, or who bought a dwelling under a developer’s new-dwelling exemption certificate applied for after that time, must lodge a return each year. You lodge even if the home was occupied all year or you qualify for an exemption.
The 183-day test
A fee is payable for each dwelling that was “residentially occupied” for fewer than 183 days in the vacancy year. A day counts as occupied if:
- you or a relative genuinely lived there;
- the home was genuinely occupied under a lease or licence with a term of 30 days or more; or
- the home was genuinely available for occupation under a lease or licence with a term of 30 days or more.
Short stays under 30 days, including through booking websites, do not count as occupied days.
Your vacancy year
The first vacancy year starts on the day you are first entitled to occupy the home, such as the settlement date or, for a newly built home, the date of the occupancy certificate. Each later year runs for 12 months from that day while you continue to hold the property.
What it costs
For vacancy years starting on or after 9 April 2024, the fee is double the application fee you paid before you acquired the dwelling. For a home bought under a developer’s certificate, it is double the fee you would have paid individually. The ATO’s own example is an apartment left vacant for more than 183 days, with a vacancy fee of $62,600, which is twice a $31,300 application fee.
| Application fee you paid | Vacancy fee each year it applies |
|---|---|
| $15,100 (new home up to $1 million, 2025–26) | $30,200 |
| $15,600 (new home up to $1 million, 2026–27) | $31,200 |
| $31,300 ($1 million to $2 million, 2026–27) | $62,600 |
All three rows are our arithmetic from the published rule (double the application fee), not figures quoted by the government.
Deadline
The return is due within 30 days after the end of the vacancy year, lodged through ATO online services for foreign investors. The property must already be on the Register of Foreign Ownership, because you need its reference number.
Late returns
If you do not lodge on time, you are taken to be liable for the vacancy fee whatever the actual number of occupied days. Failing to lodge on time is also a civil penalty of 500 penalty units ($182,000 at $364 a unit).
Co-owners
- Joint tenants lodge one return and pay one fee.
- Tenants in common each lodge, and each is liable for double their own application fee.
- A co-owner who is not a foreign person has no liability.
Exemptions
Government guidance lists these grounds, which you still declare in the return: a change of legal ownership during the year; substantial repair after fire, malicious damage or a natural disaster; substantial renovation or a home that is unsafe to occupy; the owner being in long-term in-patient or residential care; a legal restriction imposed by a court, tribunal or law; and an owner who has died with the estate pending. If you stop being a foreign person during the year, the obligation ends, though you may still need to update the Register.
Frequently asked questions
How much is the vacancy fee?
Twice the application fee you paid, for vacancy years starting on or after 9 April 2024. For a new home of $1 million or less bought in 2026–27 that is $31,200.
What counts as vacant?
A home that was not lived in by you or a relative, and not genuinely occupied or genuinely available to rent on a lease of 30 days or more, for at least 183 days in the vacancy year.
Do I need to lodge if my home is rented all year?
Yes. Everyone covered must lodge a return every year. The fee is only payable if the home was occupied for fewer than 183 days.
Is Airbnb occupancy counted?
Not if each stay is shorter than 30 days. Only occupation or availability under a lease or licence of 30 days or more counts.
When was the vacancy fee doubled?
For vacancy years starting on or after 9 April 2024, when the Fees Imposition Amendment Act 2024 commenced.
Sources
- ATO — Vacancy fee return for foreign owners
- Treasury — Guidance Note 6: Residential land (v5, 1 July 2026)
- Treasury — Guidance Note 10: Fees (v12, 19 September 2026)
- Treasury — Foreign investment fees legislation (9 April 2024)
- ATO — Residential fees for a foreign person
- Foreign Acquisitions and Takeovers Act 1975 (legislation.gov.au)
- Crimes (Amount of a Penalty Unit) Instrument 2026
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.