Buying Australian Property

Some property regulations apply to all of Australia. Others vary by State.

Australia-Wide Property Restrictions

The Australian Government has placed restrictions on buying property in Australia. These depend on your immigration status.

1. Australian Permanent Residents and Citizens
No Restrictions

2. Temporary Residents and people with Retirement /Student Visas
All foreign nationals, unless they have become Australian permanent residents, or can meet another exemption, need to seek prior Foreign Investment Review Board (FIRB) approval before buying a house.

You will normally be permitted to buy a new property and keep it if you leave Australia.

Your application will also most-likely be approved for purchase of an established property (one that has been previously occupied or sold). You must live in the property yourself rather than rent it out. When you leave Australia and/or your visa expires, you will have to sell an established property, if you have bought one.

First Home Owner Grant

There is an Australia-wide grant of $7,000 to every first-time homebuyer. Even if you have owned an overseas house before, you are eligible for this grant. (You must not have owned a house in Australia before.)

Everyone who has citizenship or permanent residence is eligible for the First Home Owner Grant. There are no income or asset tests to qualify for the First Home Owner Grant.

Stamp Duty

Stamp duty is a tax levied by each Australian State when you buy a house. The tax is levied as a percentage of the purchase price.

Each State has a different rate of Stamp Duty and the amount you pay will vary widely depending on where you buy a house.

You can get an idea of how much you will have to pay from the list below.

For each State, the approximate amount of Stamp Duty is shown for the purchase of a $250,000 and a $500,000 house. Rates valid 2008-2009.

Clearly you pay much more tax when you buy a house in Victoria compared with Queensland.

Note: First time buyers may be eligible for concessions on these rates.

State	Duty on $250,000	Duty on $500,000
Queensland	$2,500	$8,750
New South Wales	$7,240	$17,990
Capital Territory	$7,500	$20,500
Tasmania	$7,550	$17,550
Western Australia	$8,200	$17,765
Northern Territory	$5,357	$21,429
South Australia	$8,955	$21,330
Victoria	$8,870	$21,970

Stamp Duty Concessions for First Home Buyers

If you are buying your first home in Australia, you may be eligible for a reduction in stamp duty. Again, each State has its own regulations - these need to be checked carefully. Concessions are currently as follows:

State	Concession
Queensland	No duty on homes up to $500,000.
New South Wales	No duty on purchases up to $500,000. Relief applies on a sliding scale to purchases between $500,000 and $600,000
Capital Territory	Concessions for purchases below $412,000.
Tasmania	A concession of up to $4,000 for the purchase of homes up to $350,000.
Western Australia	No duty on purchases up to $500,000.
South Australia	A grant of $4,000 is available for first home purchases with a market value up to $400,000 and phases out for property with market values between $400,000 and $450,000 by $8 for every $100 in excess of $400,000.
Victoria	A grant of $3,000 or $5,000 is available - the higher rate for houses in a regional municipality in Victoria and the lower for Melbourne.