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Queensland Government - Queensland Revenue Office
Queensland Government - Queensland Revenue Office

Types of foreign persons for additional foreign acquirer duty

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    You are a foreign person for additional foreign acquirer duty (AFAD) if you are a:

    • foreign individual
    • foreign corporation
    • trustee of a foreign trust.

    Foreign individuals

    You are a foreign individual if you are not an Australian citizen or permanent resident.

    A permanent resident holds a permanent visa, or is a New Zealand citizen with a special category visa, as defined by the Migration Act 1958 (Cwlth).

    You can check if your visa is permanent or temporary by clicking on its subclass in the visa list.

    New Zealand citizens

    A New Zealand citizen who is the holder of a special category visa when entering into a transaction that involves AFAD residential land will not be liable for AFAD.

    The following examples explain when New Zealand citizens will be liable for AFAD after entering into transactions for AFAD residential land.

    A New Zealand citizen is residing in Australia and holds a special category visa when he enters into a transaction of AFAD residential land.

    In this situation, AFAD will not apply.

    A New Zealand citizen residing in New Zealand enters into a transaction for AFAD residential land in Queensland.

    AFAD will apply, because the person will not be the holder of a special category visa under the Migration Act.

    A New Zealand citizen is currently residing in New Zealand but enters into Australia to obtain a special category visa for the purposes of AFAD not applying.

    AFAD will apply if evidence, available to the Commissioner of State Revenue, indicates that the purpose of entry into Australia was to avoid paying AFAD by obtaining a special category visa. AFAD was introduced to ensure that foreign acquirers of residential property, who benefit from government and infrastructure, make an appropriate contribution to their delivery as local buyers do.

    A New Zealand permanent resident enters into a transaction for AFAD residential land in Queensland.

    AFAD will apply, because a New Zealand permanent resident will not be the holder of a special category visa under the Migration Act and is instead a foreign person for the purposes of AFAD.

    Foreign corporations

    A foreign corporation is one that is incorporated outside Australia or in which foreign persons (or related persons of foreign persons) have a controlling interest of at least 50%.

    Related persons include partners in a partnership.

    Interests of unrelated foreign persons will be considered when determining whether the foreign persons have a controlling interest in a corporation.

    Foreign trusts

    A trust is foreign if at least 50% of its interests are trust interests of:

    • foreign individuals
    • foreign corporations
    • trustees of a foreign trust
    • related persons of any of the above, including partners in a partnership.

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    Last updated: 16 March 2023