Buying Property in Australia as a Mixed-Status Couple

When one partner is an Australian citizen or permanent resident and the other is considered a foreign person, it can be confusing to understand how property rules apply. Here’s what the official guidance says.

Who counts as a “foreign person”?

The Australian Taxation Office (ATO) defines a foreign person as:

• anyone who is not an Australian citizen, not a permanent resident, and not a New Zealand citizen with a special category visa.
• some companies and trusts where foreign persons hold substantial interests.
• (Source: ATO – Are you a foreign person?)

Joint ownership: how surcharges apply

When a property is purchased jointly, state and territory revenue offices apply foreign purchaser surcharges only to the foreign person’s share.

For example:

• In Victoria, if one partner is a foreign purchaser, the Foreign Purchaser Additional Duty (FPAD) (8%) applies to that partner’s interest only.
• (Source: SRO Victoria – Foreign purchaser additional duty)
• In New South Wales, the surcharge purchaser duty and surcharge land tax apply to the foreign owner’s share.
• (Source: Revenue NSW – Surcharge purchaser duty)

Trusts and companies: important trap

If property is purchased through a trust or company, the foreign person tests apply differently. A trust where a foreign person has a substantial interest may be treated as a foreign trust even if other beneficiaries are citizens or PRs.

(Source: ATO – Are you a foreign person?)

Key takeaways

• Only the foreign person’s share attracts surcharges.
• Married or de-facto status does not exempt the foreign partner from being assessed.
• Trusts and companies require extra caution—professional advice is essential.

Next step: If you and your partner are planning a purchase, speak with your state revenue office and check the ATO foreign investment pages before signing a contract.