Additional foreign acquirer duty residential land

Additional foreign acquirer duty (AFAD) is an extra 8% of duty that applies to transactions that are liable for transfer duty, landholder duty or corporate trustee duty. AFAD applies when all the following conditions are met:

• You are an acquirer for the purposes of the transaction and a foreign person.
• Your transaction involves AFAD residential land (including chattels or existing rights).
• The liability for your transaction arises on or after 1 October 2016.

AFAD was introduced to ensure foreign acquirers of residential property who benefit from government services and infrastructure also contribute to their delivery, the same as local buyers.

AFAD residential land

AFAD residential land is land in Queensland that is or will be used solely or primarily for residential purposes, where particular conditions are met.

It includes:

• homes and apartments (including chattels)
• vacant land on which a home or apartment will be built
• land for residential development, such as
  • smaller unit blocks
  • housing subdivisions
  • major developments with a residential component
• buildings refurbished, renovated or extended for residential use.

Other types of residential property such as retirement villages and student accommodation are considered on a case–by–case basis.

AFAD residential land does not include land used for hotels and motels.

Exemption for retirement visas

You’ll also be able to lease or rent part of the property if the lease arrangement starts between 10 September 2024 and 30 June 2025 and you continue to live in the property.

To keep the benefit of the AFAD exemption in full, you must not:

• sell or transfer all or part of the property before moving in, or within 1 year of moving in
• lease or otherwise grant exclusive possession of all the property before moving in, or within 1 year of moving in
• lease or otherwise grant exclusive possession of part of the property within 1 year of moving in (if the lease arrangement started outside of the period between 10 September 2024 and 30 June 2025).

Read the public ruling on partial renting and concessions for homes (DA000.18).

Also consider…

• Learn about self assessing AFAD on relevant transactions with our AFAD residential land interactive help (if you are a transfer duty self assessor).
• Use our AFAD duty residential land toolkit (if you are a transfer duty self assessor).
• Read the public ruling on AFAD residential land (DA232.1).
• Find out more about transfer duty.
• Read about AFAD for landholder duty and corporate trustee duty.
• Read the AFAD provisions in Chapter 4 of the Duties Act 2001.
• See previous additional foreign acquirer duty rates.