This article is relevant for foreign purchasers or foreign land owners from New Zealand, Finland, Germany and South Africa, India, Japan, Norway, and Switzerland.
On 21 February 2023, Revenue NSW announced significant changes to surcharge purchaser duty and surcharge land tax in NSW.
It was determined that NSW surcharge provisions are inconsistent with international tax treaties entered into by the Federal Government with New Zealand, Finland, Germany, and South Africa.
On 29 May 2023, India, Japan, Norway, and Switzerland were added to the list of countries. These international tax treaties are related to taxation and other matters and have been given the force of federal law.
Effective from 1 July 2021, foreign nationals from New Zealand, Finland, Germany, South Africa, India, Japan, Norway, and Switzerland purchasing residential-related property or land in their own capacity will no longer be required to pay:
- surcharge purchaser duty in NSW, or
- surcharge land tax in NSW.
Refunds may be available for purchasers/transferees, and landowners, from the nations concerned who paid surcharge purchaser duty or surcharge land tax on or after 1 July 2021.
Revenue NSW will proactively identify customers and transactions that may be eligible for the removal of surcharge purchaser duty.
Refunds will be made by way of electronic funds transfer into Australian bank accounts and will only consider arranging a transfer to an overseas bank account in exceptional circumstances.
A Revenue NSW representative will contact you by phone or email to make arrangements for the payments to be refunded if your transaction has been identified for the removal of surcharge purchaser duty.
To ensure your transaction is eligible for the removal of surcharge purchaser duty and refund, the following must be supplied.
- A certified copy of your current passport or citizenship certificate
- Bank details to receive your refund. This must include your Bank State Branch (BSB), account number and name of the account.
If you have not been contacted by Revenue NSW and you believe that you are eligible for a refund of surcharge purchaser duty, or if you have received a land tax or duty surcharge, please contact us on (02) 9212 1099 or email us at firstname.lastname@example.org.