Foreign buyer costs are the line most often left out of a Queensland new-home budget. Most buyers prepare for the federal application fee, then find out from their solicitor’s figures that Queensland charges two further amounts of its own: a transfer duty surcharge for foreign acquirers (AFAD) and an annual land tax surcharge.
Those three charges are administered by different agencies and rest on three different definitions of “foreign person”. You can be inside one and outside another — which is exactly where a budget goes wrong by tens of thousands of dollars. This article sets out the Queensland position, with each figure attributed to its source page. Every figure was checked on 3 September 2026.
The short version: foreign buyer duty in Queensland comes in three separate layers — the federal foreign investment application fee, AFAD at 8% on top of state transfer duty, and a 3% land tax surcharge each year if you fall within the absentee category. The absentee land tax threshold is $350,000, well below the $600,000 threshold that applies to an individual who is a citizen, a permanent visa holder, or someone who usually lives in Australia.
What the foreign buyer costs in Queensland actually are
Three separate charges, three agencies, three different trigger points. Running them together is the most common budgeting mistake.
- Foreign investment application fee (federal). Paid once, before you buy, scaled to the value of the property. It sits outside the scope of this article — the fee brackets are covered separately.
- AFAD — additional foreign acquirer duty (Queensland). Paid once, added to the transfer duty on the transaction, collected by QRO.
- Land tax and the land tax surcharge (Queensland). Paid annually if the total taxable value of your land reaches the threshold, assessed on ownership as at midnight on 30 June.
On the federal charge, one thing is worth stating plainly: whether an application is approved is decided case by case by the federal body — paying the fee is not the same as being approved. There is also a reporting obligation to the Register of Foreign Ownership of Australian Assets when residential land is bought or sold. This article covers Queensland only; other states run their own surcharges at their own rates and conditions.
AFAD: Queensland’s extra 8% for foreign buyers
QRO describes AFAD as an extra 8% of duty that applies to transactions liable for transfer duty, landholder duty or corporate trustee duty. The rate on the QRO page is the current rate; earlier transactions were assessed at the rate that applied at the time, and QRO publishes a historical rates dataset for those.
AFAD applies only when all three of these are true at once: you are an acquirer in the transaction and a foreign person; the transaction involves AFAD residential land (including chattels or existing rights); and the liability for the transaction arises on or after 1 October 2016.
What the 8% is charged on, and on what kind of land
AFAD is 8% of the dutiable value of the AFAD residential land attributable to the foreign acquirer’s interest — not 8% of the transfer duty figure. QRO states that the dutiable value uses the GST-inclusive purchase price and includes the value of chattels in the same transaction. AFAD applies whether the purchase is for investment or to live in; the purpose makes no difference.
AFAD residential land is land in Queensland that is, or will be, used solely or primarily for residential purposes, where particular conditions are met. QRO’s list includes homes and apartments (including chattels), vacant land on which a home or apartment will be built, and land for residential development — smaller unit blocks, housing subdivisions, major developments with a residential component, and buildings refurbished, renovated or extended for residential use. Land used for hotels and motels is not included. Retirement villages and student accommodation are considered case by case. The underlying definition sits in Chapter 4 of the Duties Act 2001.
Where a house and land purchase is split into a land contract and a building contract, which components fall into the dutiable value has to be determined by QRO or by your solicitor against the specific contract set.
Getting permanent residency after signing does not remove AFAD
Duty liability is fixed at the date it arises, that is the date the contract is entered into. QRO gives the example directly: a foreign individual enters into a contract for AFAD residential land, and by settlement holds permanent residency and intends to move in — AFAD still applies. If your visa pathway is close to a permanent residency grant, the timing of the contract is a detail to work through beforehand with a solicitor and a registered migration agent, within the scope of their registration.
“Foreign person” does not mean the same thing under FIRB, AFAD and land tax
The three regimes apply three different tests, and that is where most miscalculations start.
| Regime | The test | Temporary visa (482, 500) living in Brisbane | Permanent resident living overseas |
|---|---|---|---|
| Foreign investment approval (federal) | Not “ordinarily resident”: present in Australia for 200 days or more in the preceding 12 months, and that presence not subject to a limitation | A foreign investor | May still be ordinarily resident if presence was not subject to a limitation before leaving Australia |
| AFAD (QLD, Duties Act 2001) | A foreign individual is someone who is 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. No day-count test | Within AFAD | Not within AFAD |
| Land tax absentee (QLD, Land Tax Act 2010) | All three must hold: a foreign individual, not holding a permanent visa, and not usually living in Australia | Not an absentee if they genuinely usually live in Australia | Not an absentee |
What that means in practice: someone on a 482 or a student visa living in Brisbane is within AFAD, but if they genuinely usually live in Australia they are not an absentee, so the $600,000 land tax threshold applies to them rather than $350,000.
Someone who has lodged a permanent residency application but does not yet hold a permanent visa is still a foreign individual for AFAD, because the test looks at the visa currently held. The one carve-out in that waiting group is the specified foreign retiree, covered below.
There is a fourth test as well: the ATO’s “foreign resident for tax purposes”, used for income tax and capital gains tax. The ATO says plainly that the definition of a foreign person is complex and can apply in ways that are not obvious, so determining tax residency belongs with a registered tax agent.
The 3% land tax surcharge: the cost most often missed
AFAD is paid once. Land tax repeats every year and is assessed on the total taxable value of all the freehold land you own at midnight on 30 June. Taxable value is not the price you paid: it is based on the annual land valuation issued by the Valuer-General, so the building component of a new home is not what drives this number.
The absentee threshold is lower than the resident threshold
An individual who is an Australian citizen, holds a permanent visa, or usually lives in Australia is liable for land tax once the total taxable value reaches $600,000, and the first band is $500 plus 1 cent for each $1 above $600,000.
An absentee is liable from $350,000, and pays an absentee surcharge of 3% calculated as (taxable value − $350,000) × 3%. The first band of the absentee scale is $1,450 plus 1.7 cents for each $1 above $350,000.
QRO’s own worked example: a total taxable value of $400,000 gives tax of $1,450 + (1.7 cents × $50,000) = $2,300, plus a 3% absentee surcharge of $1,500, for $3,800 payable in the year. On the same parcel, an individual inside the $600,000 threshold group has no land tax at all.
Two further points are easy to miss. An absentee cannot claim the land tax home exemption or the primary production exemption. And if the total taxable value of your land is above $350,000, you must notify QRO within 1 month of moving overseas, using Form LT16.
A foreign company, or the trustee of a foreign trust, is also liable from $350,000, with a foreign surcharge of 3% on the same formula. Buying through a company or a trust therefore changes the threshold, the surcharge and the AFAD position at the same time. Nextstar Realty does not advise on ownership structures; this is material to put in front of a solicitor and a registered tax agent before signing.
Worked example: a $700,000 home
Assumptions: a completed new home in Queensland, one contract, dutiable value $700,000, the buyer is a foreign individual holding 100% of the interest, and the contract is entered into on or after 1 August 2026 so the home concession group does not apply.
| Component | How it is calculated | Amount |
|---|---|---|
| Transfer duty at the general rate (QLD) | $17,325 on the first $540,000, plus $4.50 for each $100 of the remaining $160,000 | $24,525 |
| AFAD at 8% (QLD) | $700,000 × 8% | $56,000 |
| Total state duty, paid once | $24,525 + $56,000 | $80,525 |
| Foreign investment application fee (federal) | By value bracket, indexed annually on 1 July | A separate charge |
| Land tax and surcharge (QLD) | Annually, on the taxable value of the land and on absentee status | Depends on the Valuer-General’s valuation |
For scale: on that same $700,000 new home, a first home buyer who is an Australian citizen or permanent resident, with a contract signed on or after 1 May 2025, may claim the first home (new home) concession — which QRO describes as a full concession reducing the duty to nil, with no value cap on the home and the residential land it sits on — and pays no AFAD either. The difference on one property is $80,525.
The citizenship and residency condition for the home concession group applies to transactions entered into on or after 1 August 2026; how the concession itself is calculated is set out in our guide to transfer duty in Queensland. The exact figures for your own file are determined by QRO from the dutiable value and the date the transaction was entered into.
When is AFAD exempt, and when can relief be applied for?
There are exemptions, but the scope is narrow, and there is no general exemption for an individual on a temporary visa buying a home to live in.
- Specified foreign retiree. QRO defines this as an individual (not an agent) who holds a retirement visa (subclass 405 or 410), or who applied for a parent visa (subclass 103) or contributory parent visa (subclass 143) on or after 8 May 2018 with that application still pending, where the last substantive visa held before applying was a retirement visa (subclass 405 or 410). Such a person may be exempt from AFAD on their principal place of residence purchased on or after 1 January 2023. To keep the benefit in full, they must not sell or transfer all or part of the property before moving in or within 1 year of moving in, and must not lease or otherwise grant exclusive possession of the whole property before moving in or within 1 year of moving in.
- Residential land developers, transactions from 15 December 2025. For transactions entered into on or after 15 December 2025, an exemption from AFAD may be available where the transaction is undertaken by an Australian-based foreign entity whose commercial activities involve adding to the supply of housing stock in Queensland, provided the conditions in public ruling GEN012 are met. There are two types of approval — pre-approval and exemption approval — and where a notifiable event occurs, QRO must be advised within 28 days after the event.
- Transactions before 15 December 2025. QRO may consider ex gratia relief under public ruling DA000.15 for Australian-based foreign corporations or trusts whose commercial activities involve significant development adding to the supply of housing stock in Queensland, where that development is primarily residential.
Whether an application succeeds is decided by the Commissioner of State Revenue on the facts of each case.
Joint ownership: when only one buyer is a foreign person
This comes up constantly: one buyer already holds permanent residency, the other is still on a temporary visa. QRO gives the example directly — two people buy a home to live in, the eligible buyer takes a 75% share and claims the concession on that share, and the remaining 25% held by someone who is not a citizen, permanent resident or specified foreign retiree is assessed transfer duty at the general rate plus AFAD.
For land tax, each owner is assessed on their share of jointly owned land, together with all other land that person holds. Choosing who goes on title and in what proportions is a legal and tax decision, and should be reviewed by a solicitor and a registered tax agent before signing.
The three charges and the dates that matter
| Charge | Level | Current basis | Timing |
|---|---|---|---|
| Foreign investment application fee | Federal | By value bracket, indexed annually on 1 July | Once, before you buy |
| Transfer duty | QLD — QRO | Sliding scale; $540,000–$1,000,000 is $17,325 plus $4.50 for each $100 over $540,000 | Once, by the date the transaction is entered into |
| AFAD | QLD — QRO | 8% of the dutiable value attributable to the foreign acquirer’s interest; applies where liability arises on or after 1 October 2016 | Once, added to transfer duty |
| Land tax, absentee scale | QLD — QRO | Threshold $350,000; first band $1,450 plus 1.7 cents for each $1 over $350,000 | Annually, ownership at midnight 30 June |
| Absentee / foreign surcharge | QLD — QRO | 3% × (taxable value − $350,000) | Annually, added to land tax |
| Transfer duty home concession group | QLD — QRO | From 1 August 2026 requires an Australian citizen, permanent resident or specified foreign retiree | By the date the transaction is entered into |
What to take to a solicitor or a registered tax agent
| Question | Who to raise it with |
|---|---|
| The contract, the ownership shares, registration of title | A solicitor. Who is qualified to act on a conveyance differs between states, so confirm this with the relevant legal professional, within the scope of their registration |
| Tax residency, land tax on your specific holdings, obligations on sale | A registered tax agent |
| Lending conditions for temporary visa holders | A licensed mortgage broker or a bank |
| Your visa pathway and when permanent residency may be granted | A registered migration agent |
Nextstar Realty helps with the product side — new homes and house and land, comparing projects — and connects you to the right professional for everything else. If a referral fee arises when we introduce you to a partner broker or solicitor, that will be disclosed to you beforehand.
Frequently asked questions
What is the AFAD rate in Queensland?
QRO gives the current rate as 8%. It is 8% of the dutiable value of the AFAD residential land attributable to the foreign acquirer’s interest, not 8% of the transfer duty figure. The dutiable value uses the GST-inclusive purchase price and includes the value of chattels in the same transaction.
Does AFAD apply on a 482 or a student visa?
Yes. Under the Queensland definition, a foreign individual is someone who is not an Australian citizen or permanent resident, with no test of how long you have lived in Australia. The same person may nonetheless not be an absentee for land tax, because the absentee category requires both that you do not hold a permanent visa and that you do not usually live in Australia. Absentee status is determined by the Commissioner of State Revenue on the circumstances.
I signed on a temporary visa and had permanent residency by settlement — is there any reduction?
No. QRO states that duty liability is determined at the date it arises, that is the contract date, so AFAD still applies even where residency status changes afterwards and even where you intend to move in. That makes contract timing a detail to raise with a solicitor and a registered migration agent beforehand rather than after signing.
Is there land tax in Queensland if the land is worth less than $350,000?
For the absentee category, land tax applies once the total taxable value is $350,000 or more, and the threshold is measured across all the land you own in Queensland, not lot by lot. Taxable value is also not the purchase price — it is based on the annual land valuation issued by the Valuer-General.
Next steps
Budget in this order: work out which category you fall into under each regime, calculate transfer duty at the general rate, add AFAD at 8%, add the federal application fee, and allow for land tax each year The federal brackets are set out in FIRB application fees, the state duty scale in transfer duty in Queensland, and the product most foreign buyers are looking at in house and land packages in Brisbane. — then hand the whole set of figures to a solicitor and a registered tax agent to check against your actual file. To see what is available on the ground, browse the current Brisbane projects or book a consultation.
Sources
- QRO — Additional foreign acquirer duty (AFAD), and AFAD residential land
- QRO — Types of foreign persons for AFAD
- QRO — Assessing and calculating AFAD
- QRO — Exemption or ex gratia relief from AFAD
- QRO — Land tax threshold and rates for absentees
- QRO — Land tax threshold and rates for individuals
- QRO — Land tax rates for foreign companies and trusts
- QRO — Transfer duty rates
- Duties Act 2001 (Qld), Chapter 4 — Additional foreign acquirer duty
- foreigninvestment.gov.au — Key concepts
- ATO — Are you a foreign person buying property in Australia?
- Duties Act 2001 (Qld)
Note: the rates, thresholds and dates in this article were checked against the published Australian government sources on 3 September 2026. Rules can change after that date and every file has its own facts, so check again with QRO, a solicitor or a registered tax agent before making a decision.
This article is general information only and does not take into account your personal circumstances, financial situation or objectives. It is not legal, financial or taxation advice. You should obtain independent professional advice before making any property decision.
