The main federal legislation includes the Foreign Acquisitions and Takeovers Act 1975 (Cth) and the Foreign Acquisitions and Takeovers Regulation 2015 (Cth).
For Victorian property, the Duties Act 2000 (Vic) and Land Tax Act 2005 (Vic) can also have significant consequences.
No. Nationality alone is not the only consideration.
Whether a person is a foreign person depends on their Australian immigration or residency status and the structure through which the investment is being made.
Foreign persons generally need to make a foreign investment proposal before acquiring Australian residential land, regardless of its value. Foreign Investment in Australia
Australian citizens and many permanent residents are treated differently from overseas foreign investors.
At present, this is heavily restricted.
The Australian Government has extended the temporary prohibition so that, from 1 April 2025 until 30 June 2029, foreign investors are generally prohibited from purchasing established residential dwellings, subject to limited exceptions. Department of Foreign Affairs and Trade
The policy is intended to direct foreign residential investment toward increasing Australia’s housing supply.
Subject to the foreign investment rules and approval requirements, foreign investors may commonly be able to purchase new dwellings, near-new dwellings in qualifying circumstances, or vacant residential land for development.
Different conditions may apply depending on the particular acquisition and development proposal.
A buyer should therefore determine their foreign investment status before entering an unconditional contract.
Generally, a foreign purchaser acquiring Victorian residential property is subject to Foreign Purchaser Additional Duty (FPAD).
The current additional duty rate is 8% of the relevant dutiable value, on top of ordinary Victorian land transfer duty. State Revenue Office Victoria
For example, an $1 million residential acquisition to which the full surcharge applies can generate $80,000 of additional duty, before ordinary stamp duty is considered.
Yes.
Where the statutory definition of an absentee owner is satisfied, an Absentee Owner Surcharge may apply in addition to ordinary Victorian land tax. The surcharge rate has been 4% since the 2024 land tax year. State Revenue Office Victoria
The precise result depends on whether the owner is an individual, corporation or trust and the person’s residency status.
Yes.
In G Global 120E T2 Pty Ltd v Commissioner of State Revenue [2025] HCA 39, the High Court rejected a constitutional challenge concerning Victorian absentee owner surcharge.
Following the decision, the Victorian State Revenue Office states that challenges to foreign purchaser additional duty and absentee owner surcharge based on the relevant inconsistency argument can no longer be maintained. State Revenue Office Victoria
This is a useful current authority to include because it demonstrates that the Victorian surcharge regime has recently been considered at High Court level.
Yes.
Foreign investors may have obligations concerning the Register of Foreign Ownership of Australian Assets.
Current Australian Government guidance states that acquisitions and disposals of residential land must be notified to the Register. Foreign-owned residential property can also be subject to vacancy-fee requirements where it is not residentially occupied or genuinely available for rent for the required period. Foreign Investment in Australia
Last updated: September 2026
Jurisdiction: Victoria, Australia
Disclaimer: This article provides general information only and does not constitute legal, financial or tax advice. The law may change and its application depends on individual circumstances. You should obtain professional advice before acting on the information contained in this article.