An upfront exemption from foreign transfer duty is available for foreign purchasers who entered into a transaction on or after 7 May 2026 and will add to the housing supply by:
- constructing a new dwelling or dwellings on the land for sale or
- creating a new dwelling or dwellings on the land for sale by substantially refurbishing an existing building, or part of a building, that is not capable of being used solely or dominantly as a place of residence (for example, converting a warehouse into apartments).
A new dwelling is considered to be constructed or created for sale if it is offered to be sold to purchasers after it is constructed or refurbished. Before sale, it cannot have previously been used for any purpose (such as a residence).
Eligibility
To be eligible for the exemption, within two years of the completion date of the transaction (generally the date the land was acquired):
- you must add at least one dwelling to the housing supply
- the new dwelling or dwellings must be sold after construction or refurbishment is completed and transferred to the purchaser, and must not have previously used for any purpose before it is sold (such as a residence) and
- all the land purchased under the exempt transaction, including any existing dwellings that remain after construction, must be disposed of.
A dwelling is added to the housing supply if the total number of dwellings after construction or refurbishment is greater than the original number of dwellings. The original number of dwellings is the greater of the number of dwellings on the land when:
- the duty liability arises on the transaction (such as when the contract is entered into) or
- the number of dwellings when the transaction is completed (such as when the land is transferred under the contract).
If you won't meet the requirements
Extend the timeframe
The Commissioner has discretion to extend the two-year timeframe for an additional year if exceptional circumstances outside of the purchaser’s control have delayed the completion of construction and the sale of the land. You must lodge your application for extension before the two-year period expires.
- See Commissioner’s Practice DA 55 ‘Extension of Time to Construct, Refurbish, Subdivide or Sell Dwellings’.
- Apply using Form FDA60 ‘Foreign Transfer and Landholder Duty – Extension of Time to Meet Conditions’
Notify the Commissioner
You must notify the Commissioner within two months after the last date to meet the requirements if you don’t meet your obligations, or when it becomes apparent that you will not meet the requirements, whichever occurs first.
- The exempted duty will be clawed back if the obligations are not met.
- Penalties will apply if you don’t notify the Commissioner of your failure to meet the obligations.
How to apply
Use the form below to apply for an exemption.
Authorised agents will be able to apply this exemption when self-assessing transactions in Online Duties. We are currently updating the system and anticipate this functionality will be available in late October 2026.
