NSW OSR – Land Tax Surcharge (Foreign Persons)


From 31 December 2016 for the 2017 and subsequent land tax years, a land tax surcharge of 0.75% will also apply to foreign persons owning residential property in New South Wales.


Foreign persons will not be provided with a tax-free threshold for the land tax surcharge nor an exemption for their principal place of residence.

  • The land tax surcharge applies from 2017 tax year with liability determined for that year at midnight 31 December 2016
  • Determination of whether a person or entity is a foreign person is made on 31 December each year
  • The Land Tax surcharge payable on portion of land owned by a foreign person (including companies and trusts)
  • No tax free threshold
  • No principal place of residence exemption



A principal place of residence is owned by individuals A and B, 50% each

·        A is a foreign person

·        Land value = $400,000

·        No land tax payable

·        But surcharge land tax is payable on 50% of the land value

·        Surcharge land tax is $200,000 x 0.75% = $1,500


NB       The information contained in this article (and its contents) is general information only and should not to be considered as legal advice.  

Penny Browne Conveyancing