2026-27 Budget Update: Key Changes To Australian State And Territory Taxes – New South Wales, Queensland, ACT And South Australia

The final FY2026-27 budgets have now been delivered, with New South Wales and Queensland releasing their budgets today (23 June 2026) and the ACT and South Australian budgets having been delivered on 10 June and 4 June 2026 respectively. 

The New South Wales budget has announced significant stamp duty relief relevant to foreign investors in and operators of build-to-rent (BTR) properties and retirement villages. 

Meanwhile, the Queensland, ACT and South Australian budgets have focused on stamp duty concessions for homeowners in line with their focuses on cost-of-living relief. 

You can read our previous Tax Australia Note with updates from the budgets in Victoria, the Northern Territory, Western Australia and Tasmania here.

New South Wales

The key changes include:

Surcharge duty refund for foreign investors in Build-to-Rent properties

The Revenue and Other Legislation Amendment Bill 2026 (NSW) (NSW Bill) has introduced amendments to the Duties Act 1997 (NSW) (Duties Act) relevant to transfers of property eligible for the BTR land tax concessions which are a ‘refund eligible transfer’ (i.e. a transfer entered into on or after 1 July 2026 and not made in conformity with an agreement for sale or transfer entered into before 1 July 2026). The amendments will take effect on the date the NSW Bill receives assent.

Under proposed new section 104ZJC of the Duties Act, a transferee will be entitled to a refund of the additional 9% surcharge purchaser duty imposed on foreign purchasers of residential-related property in circumstances where:

• a BTR land tax concession under sections 9E or 9F of the Land Tax Management Act 1956 (NSW) applied to the land in the tax year the transfer was completed; 
• the BTR land tax concessions continue to apply for a further continuous period of at least 5 tax years or if the land is transferred to another person before the 5 year period. The Chief Commissioner will disregard any tax years (the Chief Commissioner must not disregard more than 2 tax years, unless satisfied it is just or reasonable to disregard additional years) in which the BTR land tax concession does not apply as a result of building, remedial or other work being carried out if the work was for the purpose of attracting the BTR land tax concession; and 
• the transferee applies for the refund within 12 months after the entitlement arises (i.e. completion of the 5 year additional term or earlier transfer to another person). 

The new concession for transfers of BTR properties to foreign purchasers in effect extends the existing exemptions available to foreign developers of BTR property to operational BTR properties. The NSW Bill has also introduced simplified provisions in relation to the existing refund regime in relation to BTR properties as it applies to developers. 

It is important to note however that the ‘no subdivision’ restriction has been maintained in that if the land is subdivided, or the ownership of the relevant land is otherwise divided, within 15 years after a build-to-rent land tax concession first applies to the land the exemption will be revoked.

Surcharge duty refund for foreign investors in retirement villages

The NSW Bill has introduced conceptually similar provisions in relation to refunds of surcharge purchaser duty for transfers of retirement villages which are a 'refund eligible transfer’.

The proposed new section 104ZJD of the Duties Act aligns the approach in relation to duty refunds for retirement villages with those existing for BTR properties and provides that an Australian corporation that is a transferee under a transfer of residential-related property will be entitled to a refund of surcharge purchaser duty in circumstances where:

• after the transfer is completed the transferee or a related body corporate has constructed a retirement village with at least 50 dwellings or constructed an additional 50 dwellings for a retirement village operating before the transfer; 
• the retirement village, or a part of it, is on the relevant land, whether or not any of the 50 dwellings are on the relevant land; and
• the transferee applies for the refund within 12 months of construction and first use and occupation as a retirement village and no later than 10 years after the transfer is completed. 

Further, proposed new section 104ZJE of the Duties Act in effect mirrors new section 104ZJC in relation to BTR properties and allows for refunds of surcharge purchaser duty where an existing retirement village with at least 50 dwellings wholly on the relevant land on the day of transfer is operated for a continuous period of 5 years from the day of completion or is transferred to another person (the Chief Commissioner must not disregard more than a total of 2 years on account of building or remedial work being carried on the land in assessing whether the 5 year requirement is met unless it is just or reasonable to do so). Like the new refund for operators of BTR properties, the application for a refund must be made within 12 months of the entitlement for refund arising. 

Surcharge duty exemption for foreign investors in BTR properties and retirement villages

As an alternative to applying for a refund of surcharge purchaser duty paid, the NSW Bill introduces provisions which allow for a person to apply to the Chief Commissioner for an exemption from surcharge purchaser duty as an ‘exempt transferee’ under proposed new section 104ZJH of the Duties Act. 

To be an eligible ‘exempt transferee’, the Chief Commissioner must consider that the person is likely to be entitled to a refund of the full amount of surcharge purchaser duty under a relevant provision in Chapter 2A Part 3A of the Duties Act (i.e. in new sections 104ZJA to 104ZJE of the Duties Act). The exemption can apply to a specific transfer or a class of transfers. 

Where approval is in effect at the time a transfer is completed, no surcharge purchaser duty is chargeable on that transfer; the transferee is not required to pay and then seek a refund.

Surcharge exemption for buy-backs of retirement villages by operators

The NSW Bill introduces provisions to remove surcharge duty payable on transfers of dwellings in retirement villages after 1 July 2026 where the transferee is the operator of a retirement village and immediately before the transfer the transferor was a resident of the retirement village. This essentially provides an exemption from surcharge for buy-back transactions. 

Queensland 

The key changes include:

Temporary residents no longer eligible for concessional rates of transfer duty

From 1 August 2026, temporary residents buying a home or vacant land to build a home will no longer be eligible for concessional rates of transfer duty. The Revenue (Cost of Living Relief Locked-in Law) and Other Legislation Amendment Bill 2026 (Qld) proposes to amend the Duties Act 2001 (Qld) to limit the transfer duty concession for home buyers to Australian citizens, permanent residents or specified foreign retirees.

Impact of prior ‘administrative arrangements’ relevant to AFAD and LTFS 

Although the Queensland budget has not introduced any new changes relevant to additional foreign acquirer duty (AFAD) and land tax foreign surcharge (LTFS) (see our previous note on the ‘administrative arrangements’ here), the budget papers have revealed that the estimated revenue foregone as a result of those ‘administrative arrangements’ is $66.2 million over the five years to 2030.

As anticipated in our note, the implication of the revenue foregone is that the reforms have made it easier for applicants seeking ex gratia relief from AFAD and LTFS. 

ACT

The key updates include:

Stamp duty concessions for homeowners 

From 1 July 2026, stamp duty will be eliminated for:

• first home buyers buying to live in their first home;
• owner-occupier purchasers of turn-key units and off-the-plan units; 
• eligible pensioners; and
• homebuyers eligible for the Disability Duty Concession Scheme regardless of the price of the property.

Increase in commercial stamp duty tax-free threshold

Additionally, the commercial stamp duty tax-free threshold is set to increase from $2 million to $2.1 million. 

South Australia

The key updates include:

Stamp duty concessions for homeowners

The South Australian budget has introduced stamp duty concessions for homeowners who sell (or have sold) their principal place of residence within 12 months of purchasing an eligible replacement home:

• New home and off-the-plan apartments: no stamp duty will be payable on the purchase of eligible new homes or off-the-plan apartments valued up to $2 million, with stamp duty concessions for properties valued up to $2.1 million;
• Vacant land on which new home is to be built: no stamp duty will be payable for vacant land valued up to $1.2 million, with stamp duty concessions for vacant land valued up to $1.3 million; and
• Seniors aged 60 and over: stamp duty relief of up to $103, 830 will be available for seniors aged 60 and over who downsize where the contract is entered into on or after 25 March 2026 for a new built hoe, off-the-plan apartment or vacant land on which a new home is to be built.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.