NOT financial advice - seek advice from a professional for your specific situation

    TaxKilnUK tax guidance
    TaxKilnUK tax guidance

    Moving Abroad → AU FIRB plus foreign property

    AU FIRB plus Foreign Buyer Surcharges plus AU CGT Main Residence (Non-Resident Removal)

    Australian residential property acquisition by non-Australian residents is regulated by FIRB (Foreign Investment Review Board) under the Foreign Acquisitions and Takeovers Act 1975. Since 1 April 2024 the Labor government has imposed an outright ban on foreign buyers of established (existing) dwellings to 31 March 2027 — only new dwellings, off-the-plan apartments, and Significant Investor Visa holdings remain permitted. State foreign buyer SDLT-equivalent surcharges add further cost: NSW 9 percent (from 1 January 2025), Victoria 8 percent, Queensland 7 percent. On the disposal side: AU has REMOVED the CGT main residence exemption for non-AU-residents disposing of AU property since the 2019 reform — a major trap for UK→AU emigrants selling their former UK home or for AU→UK returners selling AU property post-departure.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →

    In plain English

    Three separate property considerations for UK ↔ AU movement: (1) BUYING AU PROPERTY AS A FOREIGN PERSON: FIRB approval is required for any non-AU-resident residential property acquisition. Since April 2024 the Labor government has banned foreign buyers from purchasing established (existing) dwellings to March 2027. Only NEW dwellings, off-the-plan apartments, and Significant Investor Visa holdings remain permitted routes. FIRB application fees apply (AUD 14,700+ banded by price). Once you become AU permanent resident or citizen, the FIRB restriction lifts. (2) FOREIGN BUYER SURCHARGES: Each Australian state imposes additional SDLT-equivalent surcharge on foreign-person residential purchases. NSW 9 percent (from 1 January 2025), Victoria 8 percent, Queensland 7 percent, ACT/Tasmania/WA/SA varying. Plus annual land tax surcharges in NSW (4 percent) and Victoria (4 percent). Apply on top of standard AU stamp duty. (3) SELLING AU PROPERTY AS A NON-AU-RESIDENT (THE TRAP): From the 2019 reform (Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Act 2019), the AU CGT main residence exemption is REMOVED for individuals who are non-AU-residents on the date of disposal. Effect: if you bought your Sydney home as an AU resident, lived there 10 years, then moved back to UK and sold the Sydney home 6 months later as UK resident — you get NIL main residence exemption — full AU CGT on the entire gain. A short-term return to AU residence pre-sale (genuine, not artificial) can restore the exemption. Get specialist advice on timing if you have substantial pre-departure capital appreciation on an AU main residence. UK SIDE: UK NRCGT continues to apply to UK land disposals by non-residents — see /moving-abroad/nrcgt-and-temporary-non-residence. UK PRR (Principal Residence Relief) for the prior UK home generally still applies under UK rules on disposal post-departure subject to the standard PRR rules.

    How it works

    FIRB approval — who needs it + 2024-2027 ban

    FIRB approval is required for: foreign persons acquiring AU residential property; certain agricultural land; certain commercial property above thresholds. Foreign persons: non-AU citizens, non-permanent-residents, certain foreign-controlled entities. Since 1 April 2024 the Labor government has banned foreign person purchase of ESTABLISHED dwellings to 31 March 2027. NEW dwellings + off-the-plan apartments + Significant Investor Visa holdings remain permitted. AU permanent residents are NOT foreign persons for FIRB purposes — no FIRB approval needed once PR is granted.

    FIRB application fees

    Banded by purchase price. Entry level AUD 14,700 (purchase <AUD 1m); higher bands AUD 29,500 / AUD 88,400 / AUD 176,800+ for higher-value purchases. Fees doubled for foreign buyer purchases under certain rules. Payable on application; non-refundable. Approval typically 30+ days.

    State foreign buyer surcharges

    NSW: 9 percent foreign purchaser duty surcharge (from 1 January 2025; was 8 percent) — on top of standard NSW transfer duty. Plus 4 percent annual land tax surcharge. Victoria: 8 percent additional duty for foreign purchasers; 4 percent annual land tax surcharge. Queensland: 7 percent additional foreign acquirer duty. WA / SA / ACT / Tas: varying lower surcharges. Apply on residential property only (commercial typically exempt). AU citizens + AU permanent residents NOT subject.

    AU CGT main residence exemption — non-resident removal (the trap)

    Pre-2019: AU CGT main residence exemption (Subdiv 118-B ITAA 1997) applied to disposals of an individual's main residence regardless of residence status at disposal date. From 9 May 2017 (announcement) / 30 June 2019 (transition period end), the Treasury Laws Amendment Act 2019 REMOVED the exemption for individuals who are non-AU-residents on the disposal date. Effect: full AU CGT applies on the entire gain — no apportionment for pre-departure residence period. Limited 'life events' exception applies (death, terminal illness, divorce within 6 years). For most UK ↔ AU emigrants selling AU property post-departure: full CGT on the entire gain at non-resident marginal rates (no 50 percent discount for non-residents on AU property gains accrued post-9 May 2012).

    AU CGT 50 percent discount — non-resident treatment

    AU CGT 50 percent discount (12+ month holding for individuals) is REMOVED for non-AU-residents on the post-8 May 2012 portion of gains on AU property. Apportionment applies for periods of residency vs non-residency over the ownership period. Full 50 percent discount available for the pre-9 May 2012 portion if applicable.

    Foreign resident capital gains withholding

    From 1 January 2025: 15 percent withholding (previously 12.5 percent) applies on disposals of AU property by foreign-resident vendors where the purchase price is AUD 750,000 or more. Vendor can apply for a Clearance Certificate (AU residents) or Variation Notice (foreign-resident vendor with no gain) to reduce/eliminate withholding. Failure: purchaser must withhold and remit to ATO.

    CGT event I1 on temp-to-perm transition

    On transitioning from AU temporary resident (Subdiv 768-R) to AU permanent resident or citizenship: CGT event I1 (ITAA 1997 s.104-160) applies — deemed disposal at market value of foreign assets that were previously CGT-excluded under Subdiv 768-R. Election under s.104-165 ITAA 1997 to defer the I1 event is available. Get AU specialist advice before PR transition.

    Rebasing of pre-arrival foreign assets — permanent residents only

    On becoming an AU permanent resident (not temporary), AU has automatic rebasing of pre-arrival foreign assets to market value on the date of becoming permanent resident — under s.855-45 ITAA 1997 (deemed acquisition rule for foreign residents becoming AU residents). NOT for temporary residents — those are outside AU CGT entirely on foreign assets under Subdiv 768-R. Important to time foreign asset disposals around residence-status transitions.

    Who this applies to + key conditions

    Statute + manual references

    Primary: AU: Foreign Acquisitions and Takeovers Act 1975 (FATA); FIRB regulations; Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Act 2019 (main residence exemption removal). State legislation: Duties Act / Land Tax Act per state for foreign buyer surcharges. CGT: Subdiv 118-B ITAA 1997 (main residence); s.104-160 ITAA 1997 (CGT event I1).

    Related: FIRB application + fees schedule; AU stamp duty per state; AU CGT 50% discount (12+ month holding for individuals); AU CGT withholding (foreign resident capital gains withholding) — 15% from 1 January 2025 for disposals AUD 750k+; UK NRCGT (see separate page)

    HMRC manual: HMRC INTM156000+ for UK-AU treaty interaction on land + capital gains

    Case law: Harding v FCT [2019] FCAFC 29 — AU residence + permanent place of abode (relevant to property + residence interaction)

    Common mistakes + traps

    Worked example

    Catriona, UK national, bought Sydney harbour-view apartment for AUD 1.8m in 2018 while AU-resident on permanent visa; moves back to UK June 2026; sells Sydney apartment November 2026 for AUD 2.6m

    Catriona is UK-resident on the November 2026 disposal date. Her AU advisers initially assume main residence exemption applies to the full gain.

    1. Pre-2019 position would have given full AU main residence exemption on the AUD 800k gain (AUD 2.6m - AUD 1.8m = AUD 800k). Catriona would have paid nil AU CGT.
    2. Post-2019 position (Treasury Laws Amendment Act 2019): Catriona is NON-AU-RESIDENT on the disposal date (November 2026, post-June 2026 departure). Main residence exemption REMOVED — full AU CGT on the AUD 800k gain.
    3. Apportionment for CGT discount: AU residency 2018-June 2026 (8 years); non-residency Jun-Nov 2026 (5 months). 50 percent CGT discount apportioned for the AU-resident days vs non-resident days over the ownership period (per s.115-115 ITAA 1997 apportionment). Roughly 95 percent of days qualify for discount, 5 percent do not. Discount applies to ~95% of the gain.
    4. Foreign resident capital gains withholding: purchaser of AUD 2.6m property must withhold 15 percent of the purchase price (AUD 390,000) unless Catriona obtains a Variation Notice from the ATO showing her actual tax liability is lower. Cash-flow significant.
    5. UK side: UK PRR (Principal Residence Relief) may apply on the AU property if Catriona occupied it as her principal residence during ownership, but the UK PRR is rarely useful for non-UK property given UK CGT only applies on UK residents disposing of foreign property. Catriona is UK-resident on disposal so UK CGT applies on worldwide gains — UK PRR may shelter some of the gain if AU property qualified; specialist UK + AU advice essential.
    6. Net AU position: full CGT on ~AUD 800k gain at non-resident marginal rate (no tax-free threshold for non-residents; rates start 30 percent for the first AUD 135,000), with 50 percent discount apportioned. Effective AU CGT liability ~AUD 110-130k depending on discount apportionment. UK FTC available against UK CGT on the same gain.

    Outcome: The 2019 removal of main residence exemption for non-residents creates a major trap on AU property disposal post-emigration. Either dispose pre-departure while still AU-resident (full exemption applies) or accept the full CGT exposure on post-departure disposal. Get AU + UK specialist advice on timing if substantial pre-departure capital appreciation is at stake.

    How this connects to the rest of the framework

    AU temp resident vs NZ transitional resident →

    Temporary resident foreign-asset CGT exclusion under Subdiv 768-R interacts with CGT event I1 on PR transition.

    NRCGT + temporary non-residence →

    UK NRCGT continues on UK land disposals by non-residents from AU.

    Leaving-UK procedures →

    UK PRR positioning on disposal of UK home pre-departure vs post-departure.

    Frequently asked questions

    What happens if I miss the Self Assessment deadline?+
    The Self Assessment deadline is 31 January (online filing) for the previous tax year. Miss it and HMRC apply an automatic £100 penalty. Beyond that: £10 per day from 3 months late (capped at £900), 5% of tax due at 6 months late, and another 5% at 12 months late, under Schedule 55 of the Taxes Management Act 1970. If you have a genuine reason (serious illness, bereavement, technical issue with HMRC's systems) you can appeal with evidence; HMRC accepts reasonable excuse appeals in most genuine cases.
    Do I need an accountant or can I file Self Assessment myself?+
    Legally you can file Self Assessment yourself via gov.uk for free, most simple sole-trader returns (single income source, basic expenses) are realistic to self-file. An accountant adds real value when: your trading profit is above £40,000 (extraction-strategy decisions matter), you have multiple income streams (PAYE + self-employment + property + dividends), you've crossed the £90,000 VAT threshold, you're considering incorporation, or you have an HMRC enquiry. Expect to pay £400-£1,500/year for a typical sole-trader accountant; the cost is itself a deductible expense.
    How do payments on account work?+
    When your Self Assessment tax bill exceeds £1,000 for the first time, HMRC requires payments on account toward NEXT year's tax. Half the current bill is due 31 January (alongside the current bill); the other half is due 31 July. So your first January after crossing the threshold can hit with a double-bill: last year's balance + first payment on account. Adjust via Form SA303 if you expect next year's income to drop substantially. Payments on account don't apply if more than 80% of your tax is collected via PAYE.
    If I become an AU temporary resident under Subdiv 768-R do I still need FIRB approval to buy AU property?+
    Yes. FIRB approval is about residence status (citizen vs PR vs foreign person) — Subdiv 768-R is a tax concession not a migration status. A sub-class 482 holder is a foreign person for FIRB purposes and requires FIRB approval. The Subdiv 768-R tax concession does not affect FIRB requirements.
    Can I sell my AU home in the 6 months before I leave Australia to avoid the non-resident main residence trap?+
    Yes — and this is the most common planning response. Dispose while still AU-resident: full main residence exemption applies (subject to standard Subdiv 118-B rules). The disposal date for CGT is generally the contract date — so contracts must be exchanged before AU residence ends. Beware artificial last-minute timing — substance over form rules can defeat clearly-contrived arrangements. Genuine pre-departure disposal is fine.
    Does the foreign buyer surcharge apply if my spouse is AU citizen and I'm not?+
    Mixed-couple acquisition: typically the foreign buyer surcharge applies on the foreign spouse's share of the acquisition (proportional). Genuine joint-tenancy or tenancy-in-common with the AU spouse holding a defined share can limit exposure. State rules vary — check the specific state revenue office for the property location.
    Do I need FIRB approval if my AU employer is buying the property and providing housing?+
    Employer-provided housing structures are complex. If you (the individual) are the legal purchaser, FIRB applies to you. If the employer (typically an AU entity) is the purchaser providing you accommodation, FIRB may not apply to you personally — but the employer's status matters. Get FIRB-specific advice for employer-housing arrangements.

    Free + regulated-body resources

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