Land acquired by foreign persons for residential developments is chargeable with foreign transfer duty. See information about foreign transfer duty.
If the development will produce 10 or more dwellings, or lots on which 10 or more dwellings can be constructed, we may:
- reassess and refund the foreign transfer duty paid if the transaction was entered into on or before 6 May 2026 or
- apply an upfront exemption if the transaction is entered into on or after 7 May 2026.
Transactions entered into on or before 6 May 2026
Show moreTo qualify for an exemption, you or your associate must commence or complete construction or refurbishment of 10 or more dwellings within five years of the date the land was acquired.
Apply for a reassessment and refund of duty if:
- a foreign person entered into a transaction that was charged with foreign transfer duty because they acquired residential property and
- the foreign person or their associate has commenced or completed, or will commence or complete, construction or refurbishment of 10 or more dwellings on the property.
Nature of property at date of acquisition | Construction or refurbishment | Commencement or completion |
|---|---|---|
Land
| Construction | Commencement is when foundations for the first dwelling are laid. Completion is the date the first new dwelling is lawfully able to be used as a place of residence. |
| Refurbishment | Commencement is when all licences, approvals, registrations, exemptions or authorisations necessary to refurbish the first dwelling are granted, issued or obtained. Completion is the date the first new dwelling is lawfully able to be used as a place of residence. | |
| Land on which construction or refurbishment has commenced | Construction or refurbishment | Completion is the date the first new dwelling is lawfully able to be used as a place of residence. |
Application timeframes
Apply for a reassessment of the foreign transfer duty within the later of:
- five years of the completion date of the transaction (generally the date the land was acquired) or
- 12 months from the commencement or completion date (as relevant).
Transactions entered into on or after 7 May 2026
Show moreTo qualify for an exemption, you must arrange for construction or substantial refurbishment of 10 or more dwellings to be completed within five years of the date the land was acquired.
Apply for an exemption from duty if:
- a foreign person entered into a transaction that would have been charged with foreign transfer duty because they acquired residential property and
- the foreign person has or will complete construction or substantial refurbishment on the residential property of 10 or more residential dwellings within 5 years of the date the land was acquired.
Construction or substantial refurbishment is completed when the 10th new dwelling becomes lawfully able to be used as a place of residence.
Application timeframes
Apply for an exemption from foreign transfer duty at the time the relevant documents (Offer & Acceptance, Transfer of Land) are lodged for assessment, or within the later of:
- five years of the original date of assessment of the transaction or
- 12 months from the date the construction or refurbishment is completed.
Extend the exemption timeframe
Show moreIf you entered into the transaction on or after 7 May 2026, you can apply to extend the timeframe for construction or refurbishment for up to one year. The Commissioner must be satisfied that there have been delays beyond the developer’s control.
- The extension may only be applied once per development.
- You must apply for the extension before the end of the five-year period.
See Commissioner’s practice DA 55 ‘Foreign Transfer and Landholder Duty – Extension of Time to Construct, Refurbish, Subdivide or Sell Dwellings’.
Apply for an extension using Form FDA60 ‘Foreign Transfer and Landholder Duty – Extension of Time to Meet Conditions’.
If you don’t meet the exemption requirements
Show moreThe exemption will be revoked and the previously exempted duty will become payable if you:
- dispose of the exempted land prior to completion of the construction or substantial refurbishment of 10 or more dwellings or
- don’t complete construction or substantial refurbishment of 10 or more dwellings within five years (or six years if an extension has been approved) of acquiring the land.
Notify the Commissioner no later than two months after the last date to meet the requirement, or as soon as it becomes known that the requirements won’t be met. Penalties will apply if the Commissioner is not notified.
Notify the Commissioner using Form FDA61 ‘Foreign Transfer and Landholder Duty – Notifying the Commissioner - Conditions Not Met’.
