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Additional foreign acquirer duty
Additional foreign acquirer duty (AFAD) is an extra amount 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 residential land is land in Queensland that is or will be used solely or primarily for residential purposes, where particular conditions are met. AFAD residential land 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.
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.
This guide explains who a foreign person is for the purposes of AFAD, how the additional duty is assessed, and how to apply for reassessments and ex gratia relief.