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Foreign purchaser additional duty is payable when a foreign purchaser (individuals, corporations or trustees of foreign trusts) buys or acquires residential property in Victoria on or after 1 July 2015. This duty is in addition to the land transfer (stamp) duty rate and is usually paid at settlement.

Our compliance activities regularly review property purchases in Victoria to ensure the right amount of tax is being paid at the right time.

Watch our video on foreign purchaser additional duty

Have you received a letter from us?

If our records suggest that you bought or acquired residential property in Victoria on or after 1 July 2015 as a foreign purchaser but did not pay the foreign purchaser additional duty, you may receive a letter from us asking you to confirm your status.

The letter will ask you whether you were an Australian citizen, an Australian permanent resident or a New Zealander with a special category visa (subclass 444) or a foreign purchaser when you bought or acquired the residential property.

If you were a foreign purchaser, you will have to pay the additional duty.

How do I prove that I am not a foreign purchaser?

1. Individuals

Australian citizens need to provide:

  • Copy of passport, birth certificate or citizenship certificate.

New Zealand citizens need to provide:

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

All other Australian permanent residents need to provide:

  • Copy of foreign passport and evidence of Australian permanent visa.

PLUS

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

2. Corporations

Corporations need to provide:

  • 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 the property's settlement date.

PLUS

In respect of each shareholder of the company 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 who individually or together with associated persons hold more than 50% of the combined issued shares or voting power in the company:

  • A copy of the certificates of incorporation and ACN.

PLUS

For natural person shareholders or beneficiaries of the corporate or trustee shareholders:

  • 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:

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

3. Property acquired on behalf of a trust

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

PLUS

If the trust is a unit trust scheme:

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

PLUS

In respect of each of the beneficiaries/unitholders of the trust who are 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

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

PLUS

For corporate beneficiaries/unitholders:

  • Copy of certificate of incorporation and ACN.

PLUS

Any additional information and documentation that may be relevant.

What should I 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 listed in your letter.

Last modified: 11 March 2020
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