Apply for an exemption from foreign purchaser additional duty

Background information

Foreign purchasers of residential property must pay additional duty unless an exemption applies.

We only grant exemptions in limited circumstances.

The effect of this exemption is the foreign purchaser will not have to pay additional duty on the transaction.

An exemption from additional duty is available for foreign purchasers who significantly add to the supply of housing stock in Victoria. This could be through new developments or redevelopments that are primarily residential.

The exemption may apply to a foreign purchaser with a controlling or substantial interest in:

• a corporation incorporated in Australia, or 
• a trust.

Before applying, refer to the Treasurer’s guidelines issued on 1 October 2018. The guidelines include an example of how build-to-rent developments may qualify for the exemption.

You should apply for the exemption before completing your transaction. The transferee for the transfer must make the application.

Step 1: Prepare your application

Refer to the Treasurer’s guidelines when preparing your application.

Your written application should include the following information and supporting documents.

The foreign purchaser

• A brief explanation of what makes them a foreign purchaser.
• If the foreign purchaser is a corporation, the country where is it incorporated.
• If the foreign purchaser is a trust, where any corporations or trusts that have a substantial interest in the trust estate are incorporated.
• Documents detailing the ownership structure of the corporation or trust, such as:
  • Australian Securities and Investments Commission (ASIC) documents showing shareholders, or
  • a registry of beneficiaries or another document showing each beneficiary’s entitlements to the trust’s assets.

The person with a substantial or controlling interest in the corporation or trust

• Evidence of the person(s): 
  • ultimately in control of decision making, and
  • the degree of their control over the company or the administration and conduct of the trust.

Other relevant circumstances about the transaction and purchaser

• Whether the transaction will give rise to a significant addition of housing stock in Victoria, or whether the foreign purchaser is regarded as significantly adding to Victorian housing stock. Tell us whether: 
  • the development or redevelopment will add 50 or more residential premises in Victoria, or
  • the corporation or trust has added or will add 50 or more residential premises in Victoria within 12 months.
• The impact on the Victorian economy and community, including: 
  • employing Australian citizens or permanent residents in the development or redevelopment, or
  • using services and materials from Australian building contractors and suppliers.
• Evidence of good corporate behaviour. This includes complying with:
  • Foreign Investment Review Board requirements
  • corporate governance
  • Victorian taxation laws.

Step 2: Gather supporting documents

You must provide copies of any relevant documents to support your application. 

You can also include a diagram showing your corporate structure, including where any corporations are incorporated. 

Step 3: Lodge your application

Email 

Email your application with any attachments to taxadvisory@sro.vic.gov.au.

Mail 

Mail your application to:

Tax Advisory and Review Branch
State Revenue Office
GPO Box 1641
Melbourne VIC 3001

Next steps

We will consider your application and contact you if we need more information. 

We will write to you to tell you our decision.