The short answer
A temporary visa label does not answer every Queensland duty question, but timing is critical.
For a Queensland property transaction, the buyer must separately determine:
- whether each acquirer is a foreign person under the Duties Act 2001 (Qld) when liability arises;
- whether the land is AFAD residential land;
- the foreign acquirer’s interest in the property;
- ordinary transfer duty and any available concession;
- the 8% additional foreign acquirer duty, or AFAD; and
- Commonwealth foreign-investment approval requirements.
From 1 August 2026, temporary residents are generally not eligible for Queensland’s home, first home, first home new home and first home vacant land concessions. They may need to pay ordinary transfer duty at standard rates plus AFAD where it applies.
Who is a foreign individual for AFAD?
The Duties Act generally treats an individual as a foreign individual if the person is not an Australian citizen or an Australian permanent resident as defined by the Act.
The statutory definition, not tax residency, length of time in Australia or a pending migration application, controls the Queensland AFAD analysis.
Evidence commonly includes:
- passport and citizenship details;
- visa grant notice;
- VEVO result for the relevant date;
- any permanent visa or Special Category Visa evidence;
- contract or option dates; and
- the identity and acquisition share of every buyer.
A bridging visa or pending permanent-residence application should not be treated as permanent residency without checking the effective status on the liability date.
Why the contract date usually matters more than settlement
For an agreement to transfer Queensland land, duty liability generally arises when the agreement is made. A buyer who becomes a permanent resident only after the contract is entered into may still be assessed according to the earlier status.
This means that waiting for permanent residence until settlement may be too late. Contract formation can also be more complex where there is:
- an option;
- a nomination or substitution;
- a rescission and new contract;
- a material variation;
- an agency arrangement; or
- electronic offer and acceptance.
The exact transaction documents must be reviewed before deciding the relevant date.
How is 8% AFAD calculated?
AFAD is not 8% of the ordinary stamp duty.
In broad terms, it is an additional duty calculated at 8% of the dutiable value attributable to the foreign acquirer’s interest in AFAD residential land.
For example, where one foreign buyer acquires a 50% interest with an eligible Australian spouse, AFAD may apply to the foreign interest rather than automatically to the whole property. The title shares, beneficial ownership, agency, trust and Commonwealth foreign-investment rules should be checked together.
Dutiable value may also require attention to:
- purchase price and unencumbered value;
- GST treatment;
- chattels or business assets;
- related-party valuation; and
- mixed residential and non-residential use.
What changed on 1 August 2026?
The Queensland Revenue Office states that, for transactions signed on or after 1 August 2026, eligibility for the main home concessions is generally limited to:
- Australian citizens;
- permanent residents; and
- specified foreign retirees holding limited legacy visa classes.
Other temporary residents are generally ineligible for those concessions. Mixed and multiple claims may still be available where more than one transferee is involved and the statutory conditions are satisfied.
Transactions signed on or before 31 July 2026 are not subject to the new eligibility criterion merely because settlement occurs later.
The concession change and AFAD are separate. A buyer may lose a home concession and also be liable for AFAD.
Does buying a home to live in remove AFAD?
There is no general AFAD exemption simply because a temporary resident intends to live in the property.
The Duties Act contains a narrow exemption for a specified foreign retiree who satisfies detailed requirements. It should not be described as a general temporary-resident principal-place-of-residence exemption.
Similarly, the fact that the property is a first home does not, by itself, remove AFAD.
Buying with an Australian citizen or permanent-resident spouse
An Australian spouse does not automatically make the entire Queensland acquisition exempt from AFAD.
The analysis should identify:
- each buyer’s legal and beneficial share;
- whether the title is joint tenancy or tenants in common;
- the intended source of funds;
- any trust, nominee or agency arrangement;
- concession eligibility for each transferee; and
- Commonwealth spouse exemptions or approval requirements.
Changing title shares only to reduce duty may have consequences for financing, estate planning, family law, tax and foreign-investment approval. It should not be done without coordinated advice.
AFAD and FIRB are different systems
Queensland AFAD is a state duty. Foreign-investment approval is a separate Commonwealth regime.
A buyer can require foreign-investment approval and also be liable for AFAD. Receiving one approval does not remove the other obligation.
The Commonwealth rules can also distinguish between:
- established dwellings;
- new or near-new dwellings;
- off-the-plan purchases;
- vacant residential land;
- redevelopment proposals; and
- exemptions involving spouses or other circumstances.
The Australian Government’s restrictions on purchases of established dwellings by foreign persons have also changed over time. The current Commonwealth rules should be checked immediately before signing.
Property classification can be difficult
The marketing description or zoning label is not always enough to determine whether land is AFAD residential land.
Extra review may be needed for:
- mixed-use property;
- student accommodation;
- retirement living;
- rural or primary-production land;
- land intended for redevelopment;
- a development site with existing residential use; or
- a business acquisition that includes land.
Incorrect classification can materially change the duty estimate.
Can AFAD be reassessed or refunded later?
Becoming a permanent resident after signing does not, by itself, create a general AFAD refund right.
A reassessment or refund may be available where the original assessment was wrong, the transaction is cancelled in circumstances covered by the legislation, or another statutory ground applies. Objection and refund time limits can be strict.
Before applying, assemble the assessment, contract, identity evidence, cancellation documents and the complete transaction timeline.
Pre-contract checklist for temporary residents
Before signing an offer, option or auction contract, collect:
- passport and citizenship evidence for every buyer;
- visa grant notices and a current VEVO result;
- the proposed contract date;
- property type and intended use;
- price, GST and any chattels;
- title shares and beneficial ownership;
- ordinary transfer duty estimate;
- AFAD estimate for each foreign interest;
- home-concession eligibility; and
- current Commonwealth foreign-investment requirements.
Frequently asked questions
Does every 485, 500, 482, 491 or bridging visa holder pay AFAD?
Do not decide from the subclass alone. The statutory foreign-person definition, status on the relevant date, land, acquisition share and any exemption must be checked.
Is AFAD 8% of the stamp duty?
No. It is generally an additional 8% of the dutiable value attributable to the foreign interest in AFAD residential land.
Can a temporary resident claim a home concession after 1 August 2026?
Most temporary residents are generally ineligible for the four main home concessions for transactions signed from that date. Narrow exceptions and mixed claims may apply.
What if permanent residence is approved before settlement?
If the agreement was already made while the buyer was a foreign individual, the later change will not generally alter the original liability by itself.
My spouse is Australian. Is the whole property exempt?
Not automatically. Queensland duty should be assessed by buyer status, interest and the statutory rules. Commonwealth spouse provisions are separate.
Does FIRB approval remove AFAD?
No. Commonwealth foreign-investment approval and Queensland AFAD must be assessed separately.
Can AFAD be refunded after I become a permanent resident?
Later permanent residency alone is not a general refund ground. An error in the original assessment, a qualifying cancelled agreement or another statutory basis must be identified.
How Ensure Legal can assist
Ensure Legal can assist with Queensland property contract review, buyer-identity and ownership-share issues, duty documents and identifying when specialist foreign-investment advice is required.
If permanent residence is pending, obtain advice before making an offer or bidding at auction. The contract formation date can determine whether a later status change comes too late for the transaction.
Important information
This article provides general information only and is not legal, migration, tax or financial advice. Duty and foreign-investment outcomes depend on current law, documents and individual circumstances.
