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When you buy a property, in addition to the purchase price you pay to the vendor, you will also pay fees to the Queensland government. The total of these fees is determined by your residency status, which may mean you are subject to:
- Additional Foreign Acquirer Duty (AFAD); and/or
- Foreign Investment Review Board (FIRB) approval.
What is Additional Foreign Acquirer Duty?
AFAD is an extra transfer duty payment, which is an additional 7% of the purchase price of the property and is payable at the same time the transfer duty payment is due.
What is Foreign Investment Review Board approval?
When a temporary resident or foreign investor wishes to buy residential property or invest in Australia, FIRB approval is required. FIRB approval should be sought prior to signing a contract of sale, otherwise, a special condition should be included in the contract which makes provision for the purchase being subject to FIRB approval.
Fees payable depending on residency status
The below table sets out which fees are payable per residency status.
| Is AFAD payable? | Is FIRB payable? | |
| Australian citizen | No | No |
| Australian permanent resident | No | No |
| New Zealand citizen living in Australia | No | No |
| New Zealand citizen living in New Zealand | Yes | No |
| Temporary resident | Yes | Yes |
| Foreign resident | Yes | Yes |
Fees payable by Australian citizens and permanent residents
Australian citizens or permanent residents in Australia will need to pay the transfer duty, which may allow for any concession they are eligible for, such as a first home buyers’ concession.
Australian citizens and permanent residents in Australia are not subject to AFAD or FIRB approval.
Fees payable by New Zealand citizens
New Zealand citizens residing in Australia at the time of signing the contract (and who have not entered Australia solely for the purpose of signing the contract), will pay only pay transfer duty, which may allow for any concession they are eligible for.
New Zealand citizens will not be subject to FIRB approval, but if they are living outside of Australia at the time of signing the contract of sale they will be subject to AFAD.
Fees payable by temporary/foreign residents
If you are a temporary or foreign resident, you will be liable for both AFAD and FIRB approval. Liability for AFAD will continue even if you become a permanent resident during the time between signing the contract and settlement, as it is based on your residency status at the time you entered into the contract of sale.
Estimating your transfer duty
It is possible to estimate the amount of transfer duty you will be required to pay for your property purchase, including any additional duty for AFAD.
If you are entering a purchase Contract and are unsure of your obligations due to your residency status, contact our property law and conveyancing team in Townsville today!