The NSW foreign surcharge provisions (surcharge transfer duty and land tax rules) have been deemed inconsistent with international tax treaties set up by the Australian Federal Government with New Zealand, Finland, Germany, and South Africa.
The international tax treaties encompass a range of taxation and other issues and hold the weight of federal law. Therefore, starting immediately, citizens of these countries who purchase residential properties or land in their personal capacity will be exempt from paying surcharge purchaser duty or surcharge land tax.
The international tax treaties established may also impact the obligation of non-individual entities, such as corporations, trusts, or partnerships, to pay surcharge purchaser duty or surcharge land tax.
Are individual and non-individual purchaser/transferees affected?
Yes, both individuals and non-individuals may be affected by the international tax treaties.
Are you eligible for a refund?
If you are a resident of one of the relevant countries (New Zealand, Finland, Germany or South Africa) and paid:
- surcharge purchaser duty on or after 1 July 2021, you may be eligible for a refund for the surcharge purchaser duty you paid; or
- surcharge land tax on or after 1 July 2021, you may be eligible for a refund for the surcharge land tax you paid.
If you are eligible for a refund, any interest or penalty tax you paid will also be refunded.
Do you need to hold a specific visa or satisfy any residence requirements?
No, a citizen of one of the above countries is not subject to the NSW foreign surcharge provisions (surcharge purchaser duty or surcharge land tax) regardless of their Australian visa type or presence in Australia.
What happens if you no longer own the property?
You still may eligible for a refund if you paid surcharge purchaser duty or surcharge land tax on or after 1 July 2021.
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