FOREIGN buyers looking to purchase property in Queensland are now facing significantly higher upfront costs, following recent state and federal changes aimed at easing pressure on the housing market.
As of 2025, the Queensland Government has increased the Additional Foreign Acquirer Duty (AFAD) from 7 to 8 per cent.
This surcharge applies to residential property purchases by foreign individuals or companies and is payable at settlement.
It’s in addition to the standard transfer duty and is designed to ensure foreign buyers contribute fairly to local infrastructure and services. On a $1 million property, that’s $80,000 in AFAD alone.
Meanwhile, the Federal Government has also raised fees under the Foreign Investment Review Board (FIRB).
From April 9, 2024, FIRB application fees tripled. For properties up to $1 million, the fee is now $44,100. It jumps to $88,500 for properties between $1-2 million and climbs higher for more expensive purchases. A $6-7 million property, for example, now attracts a $531,000 application fee – with no guarantee of approval.
To break it down, a foreign buyer purchasing a $1 million property would now pay roughly $30,850 in standard transfer duty, $44,100 in FIRB fees, and $80,000 in AFAD. That’s over $150,000 in government charges before legal and settlement costs are added.
These additional expenses can significantly affect the return on investment for overseas buyers.
There are limited exemptions, such as for foreign spouses of Australian citizens or permanent residents, but these depend on eligibility and proper documentation.
These changes aim to make housing more accessible for locals while still allowing foreign investment –but with a much higher price tag attached.
Note: This article is for general information only and does not constitute legal advice. Always do your own research and consult a qualified solicitor.
