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All foreign purchasers of residential property in Victoria since 1 July 2015 must pay the foreign purchaser additional duty (FPAD) in addition to the land transfer duty rate, usually at settlement. This includes individuals, corporations and trustees of foreign trusts.

Our compliance activities regularly review property purchases in Victoria to ensure all customers are paying the right amount of tax at the right time.

Have you received a letter from us?

If you purchased or acquired a residential property in Victoria on or after 1 July 2015 and did not pay the FPAD at the time of your transaction, you may receive a letter from the SRO asking you to confirm your foreign purchaser status.

This is because our records suggest that you are not an Australian citizen, an Australian permanent resident or a New Zealander with a special category visa (subclass 444). If this is correct, you may be liable for the FPAD.

We are now providing you with the opportunity to review and confirm your foreign purchaser status to our investigator by the due date indicated in your letter.

How do you prove your status?

1. Individuals

For Australian citizens, please provide:

  • Copy of passport, birth certificate or citizenship certificate

For New Zealand citizens, please provide:

  • Copy of passport and evidence of holding special category visa (Subclass 444) or Australian permanent visa

For all other Australian permanent residents, please provide:

  • Copy of foreign passport and evidence of Australian permanent visa

Additionally, all Australian citizens, permanent residents and NZ citizens please provide:

  • Evidence of any change of name and any linkages between names used, and
  • Any additional information and/or documentation that may be relevant

2. Corporations

The company's:

  • Copy of the certificate of incorporation
  • Australian company number (ACN)
  • Complete copy of the Memorandum or Articles of Association
  • Copy of company register/register of members as at settlement date

PLUS

In respect of each of company shareholder who is a natural person:

  • Australian citizens – copy of passport, birth certificate or citizenship certificate
  • New Zealand citizens – copy of passport and evidence of holding special category visa (subclass 444) or Australian permanent visa
  • All other Australian permanent residents – copy of passport and evidence of Australian permanent visa

PLUS

For corporate and trustee shareholders whom individually or together with associated persons hold more than 50 per cent of the combined issued shares or voting power in the company, please provide the following:

  • A copy of certificate of incorporations and ACN

PLUS

For natural person shareholders/beneficiaries of the corporate or trustee shareholders, please provide:

  • Australian citizens – copy of passport, birth certificate or citizenship certificate
  • New Zealand citizens – copy of passport and evidence of holding special category visa (subclass 444) or Australian permanent visa
  • All other Australian permanent residents – copy of passport and evidence of Australian permanent visa

PLUS

For all persons, please provide evidence of any change of name and any linkages between names used.

PLUS

Any additional information and/or documentation that may be relevant.

3. Property acquired on behalf of a trust

Please provide a complete signed and dated copy of the trust deed with all its amendments.

PLUS

If the trust is a unit trust scheme, please provide:

  • Copy of the unit register from the date of establishment to current

PLUS

In respect of each of the beneficiaries/unitholders of the trust who are a natural person, please provide:

  • Australian citizens – copy of passport, birth certificate or citizenship certificate
  • New Zealand citizens – copy of passport and evidence of holding special category visa (subclass 444) or Australian permanent visa
  • All other Australian permanent residents – copy of passport and evidence of Australian permanent visa

PLUS

Evidence of any change of name and any linkages between names used.

PLUS

For corporate beneficiaries/unitholders, please provide:

  • Copy of certificate of incorporation and ACN

PLUS

Any additional information and/or documentation that may be relevant.

What should you do now?

Foreign purchasers

If you believe you are a foreign purchaser, you can make a voluntary disclosure by the due date outlined in the letter you received. If you do this, any applicable penalty amount may be reduced. 

Non-foreign purchasers

If you believe you are not a foreign purchaser (that is, you believe you are an Australian citizen, an Australian permanent resident or a New Zealander with a special category visa (subclass 444), you should supply the required copies of identity evidence by the due date to the investigator listed in your letter.