Land acquired for residential developments by foreign persons will be exempt from foreign transfer duty if the foreign person or their associate develop the lot to produce 10 or more dwellings, or lots on which 10 or more dwellings can be constructed.
The foreign person or their associate must commence or complete the construction, substantial refurbishment or subdivision of the land within five years of the completion date of the transaction or acquisition to qualify for an exemption, as described in the table below:
| Nature of property at date of acquisition | Construction, refurbishment or subdivision | Commencement or completion |
|---|---|---|
Land
| Commence construction of 10 or more dwellings | When foundations for the first dwelling are laid |
| Commence subdivision of land into 10 or more lots capable of being a dwelling | When the first lot capable of constructing a dwelling is subdivided under the Land Tax Assessment Act 2002 | |
| Commence substantial refurbishment of 10 or more dwellings | When all licences, approvals, registrations, exemptions or authorisations necessary to refurbish the first dwelling are granted, issued or obtained | |
| Land where construction or refurbishment of 10 or more dwellings has commenced | Complete construction or substantial refurbishment of 10 or more dwellings | When the first dwelling is ready to be used as a place of residence |
| Vacant or substantially vacant and subdivision has commenced | Complete subdivision of land into 10 or more lots capable of being a dwelling | When the certificate of title is issued for the first lot that is capable of having a dwelling constructed |
An application for an exemption must be in the approved form FDA43 ‘Foreign Transfer Duty – Developer Exemptions’ and made within the later of:
- five years of the completion date of the transaction or
- 12 months from the date the foreign person or their associate commences or completes (as relevant) the construction, refurbishment or subdivision of the land.
