Vacancy fee return for foreign owners

What is a vacancy fee return

A vacancy fee return is an online form that you lodge using Online services for foreign investors once a year while you own the residential property.

The information required includes how many days in a vacancy year your property was occupied, that is:

• occupied by the owner living in the property
• rented by a tenant
• made genuinely available for rent.

You or your representative must lodge the vacancy fee return within 30 days from the end of each vacancy year using Online services for foreign investors.

How a vacancy fee applies to you

A vacancy fee is a fee that you pay when your residential property is vacant for 183 days (6 months) or more in one vacancy year. By living in the dwelling or making it available for rent, you may not need to pay the fee.

Note: Established dwellings purchased as a principal place of residence cannot be rented or leased. The property needs to be genuinely occupied by foreign owners or their family members.

You may need to pay a vacancy fee if your residential dwelling is not:

• residentially occupied
• genuinely available on the rental market
• rented out for 183 or more days (6 months) in a 12-month period.

A vacancy fee may also apply if the vacancy fee return is not lodged by the due date.

More information on residential land and the vacancy fee are available at the Foreign InvestmentExternal Link website.

When do you pay the vacancy fee

When you lodge your vacancy fee return, the confirmation page will tell you if you are liable to pay a vacancy fee and the amount you need to pay. You can pay the fee when lodging the return or within 30 days of lodging the vacancy fee return.

The vacancy fee is based on the fee amount you paid when you submitted the foreign investment application.

After you've lodged we will email you a notice of liability of the vacancy fee payable that includes the following:

• information on the reason we are charging you this fee
• the fee amount payable
• payment details
• the due date.

It is important you use the correct payment reference number (PRN) when making a payment.

Changes to legislation mean that for vacancy years that start from 9 April 2024, the vacancy fee will be double the foreign investment application fee. This applies for all residential properties that are within scope of vacancy fee.

If you acquired the dwelling under a New or near-new dwelling exemption certificate held by a developer, the vacancy fee payable will be based on what the foreign investment application fee would have been for the dwelling had the exemption certificate not been in place.

If the application fee was waived, the vacancy fee is based on the lowest foreign investment application fee that would have been payable.

In the case of joint tenants, only one vacancy fee will be payable. For tenants in common, the fee payable will be based on the foreign investment application fee that was payable by each individual tenant.

For more information on fees, see Residential fees for a foreign person.

Who must lodge a vacancy fee return

You must lodge a vacancy fee return if you:

• made a foreign investment application for residential property after 7:30 pm AEST on 9 May 2017
• purchased under a New or near-new dwelling exemption certificate that a developer applied for after 7:30 pm AEST on 9 May 2017.

The vacancy fee may also apply where a foreign person failed to submit a foreign investment application but purchased a residential property before 9 May 2017.

Joint owners or multiple dwellings

If the dwelling is owned by 2 or more people as joint tenants, you only need to lodge one vacancy fee return.

If you own a share of a dwelling as a tenant in common, you must each lodge a vacancy fee return.

When multiple dwellings are constructed on the land, you must lodge a vacancy fee return for each new dwelling constructed.

When you are not required to lodge a vacancy fee return

You are not required to lodge a vacancy fee return but are required to update your details if any of the following occur during a vacancy year:

• the dwelling is sold or otherwise legally transferred (including if the owner dies)
• you are no longer a foreign investor.

You do not have to lodge a vacancy fee return if you own vacant land and a dwelling has not yet been constructed on the land. You must lodge a vacancy fee return once a dwelling has been constructed and for each new dwelling constructed.

If any other changes occur, such as changes to your foreign person status or property, you can update your details.

More information about conveyancers, real estate agents and other persons charging a fee for services is available the Tax Practitioners BoardExternal Link website.

You should direct any questions relating to tax agent services to the Tax Practitioners BoardExternal Link.

When to lodge a vacancy fee return

Lodge your vacancy fee return within 30 days at the end of each vacancy year.

The first day of the 30-day period is the day following the last day of the vacancy year.

Email reminder to lodge

We generally email you a reminder to lodge your vacancy fee return if your details are up to date on Online services for foreign investorsExternal Link.

What is the vacancy year

In applying the vacancy fee rules, a vacancy year is each successive period of 12 months starting on the occupation day for the dwelling during which you have continuously held an interest in the dwelling.

A vacancy year is unique to each dwelling held by you. It is not a calendar year or a financial year.

What is occupation day

The occupation day is the first day you have the right to occupy the dwelling. This will typically be the:

• settlement day for an established dwelling
• day on which a fitness for occupancy certificate for a new dwelling was issued.

When construction of a dwelling has been completed you will need to contact us with the occupancy date before you can lodge a vacancy fee return, see Troubleshooting Online services for foreign investors.

When is a dwelling residentially occupied

A dwelling is considered residentially occupied if any of these situations last for at least 183 days in a vacancy year:

• The owner or a relative of the owner genuinely occupied the dwelling as a residence.
• The dwelling was genuinely occupied as a residence subject to lease or license for minimum terms of 30 days.
• The dwelling was made genuinely available as a residence on the rental market (with minimum terms of 30 days).

Residential occupancy of at least 183 days does not need to be one continuous block of time. Residential occupancy can be made up of multiple continuous periods of at least 30 days throughout the vacancy year.

If a dwelling is made available for a short-term lease of less than 30 days (including via web-based stay sites) it is not residentially occupied. These dwellings are liable for a vacancy fee.

We consider a dwelling genuinely available for occupation as a residence (with a term of 30 days or more) if it is:

• made available on the rental market
• advertised publicly
• available at a market rent.

You may need to provide supporting evidence to prove a dwelling was residentially occupied during a vacancy year. For example, if you are requesting a fee waiver on the basis that the dwelling was occupied.

How to lodge a vacancy fee return

You should lodge a vacancy fee return using Online services for foreign investors. Select either:

• Lodgments then Vacancy fee return
• Lodge or pay vacancy fee return quick link.

If the occupancy date is not listed on your asset in Online services for foreign investors, you will need to contact us with the date, see Troubleshooting Online services for foreign investors.

For further details on how to lodge your return and pay the vacancy fee, see Lodge a vacancy fee return.

Log in to Online services for foreign investors

From July 2023 when you register a residential dwelling, you will receive an asset identification number (asset ID), previously known as a land registration number.

If you:

• received a vacancy fee reminder from us, the number will be in the email
• have not received a vacancy fee reminder, you may need to register your asset first in Online services for foreign investors to receive an asset ID.

Vacancy fee exemptions

You do not pay a vacancy fee if you can show that your dwelling was incapable of being occupied as a residence for at least 183 days in a vacancy year. You must still lodge a vacancy fee return to claim this exemption.

Your dwelling may be considered incapable of being occupied as a residence if any of the following apply:

• The dwelling is damaged, unsafe or is otherwise unsuitable to be occupied as a residence.
• The dwelling is undergoing substantial repairs or renovations.
• Occupation of the dwelling as a residence is prohibited or legally restricted by an order of a court or tribunal or a law of the Commonwealth, state or territory.
• A person (who may or may not be the foreign person) who ordinarily occupies the dwelling was absent from the dwelling due to receiving long-term, in-patient, medical or residential care.

You may be required to provide acceptable supporting evidence to prove the dwelling was incapable of being occupied.

Vacancy fee waivers

We only waive or remit fees in limited circumstances.

The vacancy fee waiver form is not available in Online services for foreign investors.

For information on details we consider and how to make a request, see Request waiver of an application fee.

Penalties that may apply if you do not lodge

If you do not lodge your vacancy fee return by the due date, you may be liable to pay a vacancy fee. This is regardless of the number of days the dwelling was residentially occupied during the vacancy year.

If you are directed to pay the vacancy fee for failing to lodge, you will receive an email from us. The email notice will provide the following information:

• reason we are charging the fee
• amount of the fee you have to pay
• payment details
• due date.

You may be liable for an infringement notice or a civil penalty if you do not:

• lodge a vacancy fee return on time
• keep records that are relevant to your liability for vacancy fees.

You are required to keep these records for at least 5 years after the end of each vacancy year.

More information on compliance for residential land is available at the Foreign InvestmentExternal Link website.

Update your details if your situation changes

It is important to keep us up to date about your situation, so we can contact you about your property.

If your situation changes, you must update your details in Online services for foreign investors or contact us.

A change of situation may include where:

• you are no longer considered a foreign person (foreign owner)
• ownership of your property changes
• the owner has died
• the vacant land or redevelopment property does not have a dwelling on it, or construction is not complete
• construction of a new dwelling has been completed and a certificate of occupancy was received.

If your:

• personal details change, update your profile – see Manage your details in Online services for foreign investors
• asset details change, update the asset using Add or Edit an event – see How to register or manage an asset for foreign investors.

How to report a breach of the foreign investment rules

If you suspect you’ve breached your foreign investment conditions, contact us as soon as possible.

If you know or suspect someone else has breached the foreign investment rules, you can confidentially report a breach to us.