Council rates
Levied by local government, varying by property and area but commonly $1,200 to $2,000 a year. Water and sewerage are billed separately.
Home / Tax & structure
The purchase price
is not where this is decided
Australian property is taxed when you buy it, while you hold it, and when you sell it. If you are also a tax resident elsewhere, a second system runs alongside the first. What follows is the general position.
To be clear about what this page is
We are not accountants, and we do not offer tax advice. This is background so that the conversation with your accountant starts further along. What applies to you specifically is for a registered practitioner to determine.
Our role sits between the two. We work with accountants on ownership structure and acquisition timing, keep track of what has to be lodged and when, and prepare the documents.
Stage 01 · Acquisition
What you pay to buy
The largest single bill, and the one most often left out of an overseas buyer's budget.
Stamp duty
A state transfer duty, calculated on a sliding scale that varies between jurisdictions. Broadly 3 to 5.5 per cent of the purchase price.
Foreign purchaser surcharge
Levied in addition to ordinary stamp duty where a foreign person acquires residential property. This is the number that changes budgets.
| State | Surcharge | On a $1m property | Note |
|---|---|---|---|
| New South Wales · Sydney | 9% | $90,000 | Increased January 2025 |
| Victoria · Melbourne | 8% | $80,000 | — |
| Queensland · Brisbane | 8% | $80,000 | — |
| South Australia · Adelaide | 7% | $70,000 | — |
| Western Australia · Perth | 7% | $70,000 | — |
| Tasmania · ACT · Northern Territory | None | — | The ACT applies an annual land tax surcharge instead |
Rates current as at August 2026. State governments adjust these at budget time, so the rate applying on the day you contract should be confirmed.
What this table does to the choice of city
The same million-dollar house costs a foreign buyer $20,000 more in Sydney than in Adelaide before anyone has looked at the property. Add the difference in median prices and the gap widens considerably. Which capital you buy in is an arithmetic question, not a preference.
The rest of the acquisition bill
- FIRB application fee — tiered by price. See foreign buyer rules
- Transfer registration — payable to the state
- Conveyancing or legal fees — typically $1,500 to $3,000
- Building and pest inspection — $400 to $800
- Lender fees — where finance is used
We have worked a full example on the fees page.
Stage 02 · Holding
What you pay while you own it
Land tax
A state tax on land value. Your principal residence is generally exempt; investment property is not. Holdings within the same state are aggregated.
Absentee owner surcharge
An additional annual land tax applying to foreign owners who do not reside in Australia. The design and rate differ by state and are revisited regularly. Being annual, it compounds over a long hold.
Income tax on rent
Letting the property brings it into the Australian income tax system. Non-residents face a different rate structure from residents; interest, repairs and depreciation are generally deductible.
Stage 03 · Disposal
What you pay to sell
Capital gains tax
Assessed on the gain. Australian residents who have held an asset for more than twelve months receive a 50 per cent discount on the assessable gain; non-residents do not. That single distinction moves the final figure more than almost anything else on this page.
Foreign resident withholding
Where a foreign resident sells Australian property, the purchaser is required to withhold a portion of the price and remit it to the ATO. The rate and the threshold both changed from 1 January 2025. A clearance process exists, so a sale needs to be planned rather than reacted to.
Why the exit has to be modelled before the entry
Whether the property is held in one name or two, and when it is sold, changes what you keep. Yet most of that is fixed the moment contracts are signed. Changing it afterwards costs roughly what buying and selling again would cost.
Your home jurisdiction
The obligations that follow you home
Overseas buyers frequently handle the Australian side carefully and overlook the reporting due where they are resident. “I didn't know” is rarely a defence.
Foreign exchange reporting
Many countries require the acquisition of overseas real estate to be reported through an authorised bank, with further reporting on changes and disposal. Korea is one of them.
Annual asset disclosure
Where thresholds are met, overseas property holdings are commonly declared with the annual income tax return in your country of residence.
Rental income at home
Residents are usually taxed on worldwide income. Tax paid in Australia is generally relieved through a foreign tax credit mechanism.
Gains on disposal
A gain taxed in Australia may also be assessable at home, with double taxation relieved under the applicable treaty.
Structure
Whose name it goes in
The decision with the largest effect and the shortest window. Below are the options and their general characteristics; which one suits you depends entirely on your circumstances.
| Structure | General characteristics | Watch for |
|---|---|---|
| Sole name | Simplest and cheapest to establish. Finance is generally most straightforward. | Income and gains concentrate on one person |
| Joint with spouse | Income and gains split by holding proportion. Where the spouse is a citizen or permanent resident, the foreign person test changes entirely. | Proportions are difficult to alter later |
| Company | Succession and transfer of interests are more flexible. Establishment and compliance cost more, and some concessions do not apply. | Foreign person status follows the shareholding |
| Trust | Widely used in Australia, with flexibility in distribution and succession. Design and administration are involved. | Foreign beneficiaries can attract surcharges |
This page goes as far as “these are the options”. “This is the one for you” belongs to your accountant.
Succession
Inheritance and gifting
Australia has no inheritance tax and no gift duty. This is widely repeated and only half true.
No death duty is not the same as no tax. In Australia the position is settled through capital gains tax when the property is eventually sold, and how the cost base passes to the beneficiary changes the amount materially. Meanwhile, if the person inheriting is tax resident somewhere that does levy inheritance tax, that liability is unaffected by Australia's silence on the subject.
Which is to say this is a two-system question, and the answer is largely determined by how the property was held in the first place. That is the point at which we bring an accountant into the conversation — before the purchase, not after.
Our role
What we do and what we don't
What we do
· Introduce registered accountants and tax agents
· Participate in structuring and timing discussions
· Track lodgement dates and flag them in advance
· Prepare and submit supporting documentation
· Sequence the Australian and overseas steps
What we don't
· Calculate your liability or advise on tax
· Recommend arrangements to reduce tax
· Prepare or lodge returns
· Advocate a particular structure
Each of these belongs to a registered practitioner.
This page sets out general information on published rules as at August 2026 and does not constitute tax advice. Rates and rules change, and their application to your circumstances may differ entirely. Obtain advice from a registered tax agent or qualified accountant before acting. We accept no liability for reliance on this material.