Work out what fees you must pay as a foreign investor when investing in residential property in Australia.
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When to pay a fee
You must pay a fee when submitting an application for foreign investment approval, including for an:
approval to purchase a specific residential property (that is, a no-objection notice)
application for an exemption certificate to purchase a non-specified residential property
application to vary an existing foreign investment approval (that is, a no-objection notice or an exemption certificate).
Your fees cover ATO review of your application and are relevant for each application. Before ATO can consider your application, fees must be paid in full.
Fees also apply if you are liable for an annual vacancy fee.
There are limited circumstances where ATO grant a fee waiver or remission.
Residential property application fees
The same fee applies to applications for approval to purchase a specific property (a no-objection notice) or an exemption certificate.
For residential property applications, the fee payable is generally based on the value of the property you are seeking to purchase.
Different fees apply if you are a property developer applying for a new or near new exemption certificate.
See how to work out application fees for:
Residential property or exemption certificate application fees
29 July 2022 to 30 June 2023
Residential property and exemption certificate application fees for acquisitions in residential land from 29 July 2022 to 30 June 2023
1 July 2023 to 30 June 2024
Residential property and exemption certificate application fees, for acquisitions in residential land from 1 July 2023 to 30 June 2024
Variation application fees
You must pay a fee to apply to vary an existing foreign investment approval (that is, a no-objection notice or an exemption certificate).
For 29 July 2022 to 30 June 2023, the fee is:
$4,000 for a simple variation (considered immaterial or minor)
$26,400 for a complex variation (not of an immaterial or minor nature).
For 1 July 2023 to 30 June 2024, the fee is:
$4,200 for a simple variation (considered immaterial or minor)
$28,200 for a complex variation (not of an immaterial or minor nature).
ATO will cap your fee where you are seeking to vary an application notice and you originally paid a lower fee. For example, if you requested a complex variation in May 2023 for an approval where you originally paid a $13,200 fee, the variation fee is capped at $13,200.
Tenants in common share of fees
If you are purchasing the property as tenants in common, the fee payable for the interest is equal to your percentage of ownership in the property.
Calculate fee based on your percentage ownership in the property.
Sara is a foreign investor who is purchasing an Australian property with another investor as tenants in common. She is seeking approval to purchase 25% of a $1.5 million property with the other investor. On 1 May 2023, she applies for residential approval. The application fee for a $1.5 million property is $26,400. When Sara submits her application, she needs to pay $6,600 which is 25% of the total fee for the property.
End of example
Annual vacancy fee
If your property is not occupied or rented out for 183 days (6 months) or more in a vacancy year, or you fail to lodge your annual vacancy fee return on time you may need to pay a vacancy fee.
This fee is generally the same as the application fee you paid when you submitted your residential property or exemption certificate application.
Fees are calculated when you lodge your vacancy fee return.
Property developer application fee
Property developers applying for a new or near new dwelling exemption certificate must pay an initial application fee. The fee is:
$28,300 for 1 July 2022 to 28 July 2022
$56,600 for 29 July 2022 to 30 June 2023
$60,600 for 1 July 2023 to 30 June 2024
You are then required to report the sales of new or near-new dwellings every 6 months. A separate fee per sale will be payable for each dwelling sold to a foreign person under the certificate.
When fees are updated
Fees for foreign investment applications and notices are indexed each financial year on 1 July. The information on this page is correct at the time of publishing.
For more details, see the fee guidance noteExternal Link.
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* This article is reproduced from Fees for foreign residential investors | Australian Taxation Office (ato.gov.au)