Revenue NSW has determined that the current surcharge purchaser duty and surcharge land tax provisions for certain foreign residents are inconsistent with their nation’s international tax treaties with Australia.

In response to this, reimbursements will be made for any surcharge purchase duties and surcharge land tax paid on or after 1 July 2021 by eligible residents of New Zealand, Finland, Germany and South Africa.

The above list was extended on 29 May 2023 to include India, Japan, Norway and Switzerland.

International tax treaties and non-discrimination provisions

Some International Tax Treaties contain non-discrimination provisions, which means that a citizen of the other country that is a party to the treaty, will be subject to same taxes and duties (and their implications) as imposed on an Australian resident.

This matter has been taken up by Revenue NSW to address the inconsistencies between non-discrimination provisions in the tax treaties the concerned countries have with Australia and the foreign person surcharge purchase duty and land tax levied on citizens of these nations.

Commencing 21 February 2023, residents of these countries who purchase or own NSW residential property or land are no longer required to pay surcharge purchaser duty or foreign owner surcharge land tax.

Other matters

Revenue NSW will internally identify taxpayers and transactions that may be eligible for refunds in the coming months. Eligible taxpayers will be directly contacted to discuss purchases made on or after 1 January 2021 and potential refunds.

If you are a resident of the countries in question, consider collating all necessary information related to any residential property or land purchases on or after 1 January 2021 and have it on hand for any queries that may be raised by Revenue NSW in relation to this matter.

If you would like to discuss further or require help in getting relevant information ready, please feel free to contact our office.