Buying property in Australia is tricky enough without the added complexity of state taxes, federal rules, and the ever-changing definitions of who qualifies as a “foreign person.”
Recently at Metropole, we worked with a client who held a Resident Return Visa (subclass 155) – a type of permanent visa. Their big questions were:
- Will I be treated as a “foreign person” when buying property?
- Do I need Foreign Investment Review Board (FIRB) approval?
- Will I have to pay extra stamp duty or land tax?
The problem is that the answers aren’t straightforward.
There are federal rules to consider, then each state has its own interpretations.
What makes things more confusing is that while most states treat 155 visa holders as permanent residents (and don’t charge extra fees), New South Wales takes a completely different approach.
Here’s what you need to know.
Step 1 — The Federal Position (FIRB)
Most foreign buyers need FIRB approval before buying residential property. But under the current guidelines, 155 visa holders are treated as residents — so no FIRB approval is required.
The catch? FIRB follows the Australian Taxation Office’s (ATO) residency rules, not just your visa status.
That means if you spend too much time outside Australia, the ATO could classify you as a non-resident, which would change your FIRB obligations.
The ATO applies several residency tests, and they can be complex. If you fail one of these tests, your treatment by the ATO (and therefore FIRB) changes – potentially costing you later.
You can review the ATO’s residency tests here: ATO Residency Tests
Further reading:
Step 2 — The State and Territory Rules
Now here’s where things get messy.
FIRB rules are federal, but stamp duty and land tax are controlled by the states. And each state views 155 visa holders a little differently.
Queensland
- Stamp Duty: No additional Foreign Acquirer Duty (AFAD).
- Land Tax: No absentee surcharge while you hold a permanent visa. If you lose it, the surcharge kicks in.
New South Wales
Here’s the outlier. On paper, if you’re a permanent visa holder, you should be fine. But NSW applies an “ordinarily resident” test.
If you’re not in Australia for at least 200 days per year, you’ll be treated as a foreign purchaser, regardless of your visa.
That means:
- Stamp Duty: An additional 8% surcharge.
- Land Tax: A 5% surcharge on the taxable value of your property.
Victoria
- Stamp Duty & Land Tax: No surcharges for permanent visa holders.
Western Australia
- Stamp Duty: No surcharge.
- Land Tax: No absentee surcharge; standard investor rates apply.
South Australia
- Stamp Duty: No surcharge.
- Land Tax: No surcharge.
Tasmania
- Stamp Duty & Land Tax: No surcharges.
Australian Capital Territory
- Stamp Duty: No surcharge.
- Land Tax: Could change if your visa status changes.
At-a-Glance Table
| State/Territory | Stamp Duty Surcharge? | Land Tax Surcharge? | Key Notes |
| QLD | No | No | Changes if visa lost |
| NSW | Possible | Possible | “Ordinary resident” test applied |
| VIC | No | No | Permanent visa exempt |
| WA | No | No | Standard investor rate |
| SA | No | No | Permanent visa exempt |
| TAS | No | No | Same as SA |
| ACT | No | Conditional | May change if visa status changes |
Key Takeaways for 155 Visa Holders
- FIRB approval usually isn’t needed – but watch your ATO residency status if you travel a lot.
- Most states treat 155 visa holders like permanent residents – no extra surcharges.
- NSW is the exception: if you’re not “ordinarily resident,” you may pay thousands more in duty and tax.
- Visa status matters – lose permanent residency and surcharges may apply (particularly in QLD).
- Always check the current rules before buying – they can and do change.
Some final thoughts
The bottom line is that for property investors on a 155 visa, the overall picture is positive.
In most states, you’ll be treated like a permanent resident when it comes to stamp duty and land tax.
But don’t assume the rules are uniform – especially in NSW.
One wrong assumption could cost you tens of thousands of dollars.
If you’re in any doubt, seek expert advice before making a commitment.
Disclaimer: This article is for general information only and is not legal or financial advice. Always confirm with the relevant state revenue office and FIRB before making investment decisions.
