Land acquired by foreign persons for residential developments is chargeable with foreign transfer duty. See information about foreign transfer duty.
If the development will involve subdividing property for the purpose of constructing 10 or more dwellings on the land, 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 subdivision 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 subdivision for the purposes of constructing 10 or more dwellings on the land.
Nature of property at date of acquisition | Commencement or completion |
|---|---|
| Land where subdivision has not commenced | Commencement is when the first lot capable of constructing a dwelling is subdivided under the Land Tax Assessment Act 2002. Completion is the date the certificate of title for the first lot capable of constructing a dwelling is issued. |
| Land where subdivision has already commenced | Completion is the date the certificate of title for the first lot capable of constructing a dwelling is issued. |
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 the land to be subdivided within three years of the date the land was acquired. The land will be subdivided when the certificate of title for the lots resulting from the subdivision are issued.
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 subdivision for the purposes of constructing 10 or more dwellings on the land.
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 subdivision 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 to complete subdivision 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 three-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 subdivision, unless the disposal received a connected entity exemption (or that exemption would have applied if landholder duty were chargeable) or
- don’t complete the subdivision within the relevant timeframes.
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’.
