Are you a New Zealand citizen planning to purchase property in Victoria? Or are you preparing to move to Australia and looking for a home? If so, you must be aware of the new regulations coming into effect on 26 November 2025.
Previously, your visa status (Subclass 444) was the key criterion. However, moving forward, “actual residency” will be the core factor for tax exemptions. Here is a clear breakdown of these critical changes to help you avoid becoming liable for the Foreign Purchaser Additional Duty (FPAD).
📅 Key Change: From Visa Requirements to ‘Residency Requirements’
The ‘Subclass 444 Visa Requirement’ that previously applied to New Zealand citizens purchasing property in Victoria will no longer apply. Instead, a new Residency Requirement will be introduced.
This change takes effect on 26 November 2025. This means that for any dutiable transaction occurring on or after this date, simply being a New Zealand citizen is no longer sufficient. You must prove that you actually reside in Australia to be exempt from the Foreign Purchaser Additional Duty (FPAD).
🏠 Detailed Analysis of the New Residency Requirement
Under the newly applicable Section 3K of the Duties Act, to avoid being classified as a ‘Foreign natural person’ and to receive the FPAD exemption, a New Zealand citizen must meet the following residency criteria:
“Reside for a continuous period of at least 6 months within the last 12 months”
The core of the statutory residency requirement lies in continuity and duration.
- The Period: A window is set commencing 12 months before and ending 12 months after the date of the dutiable transaction (e.g., contract date).
- Residency Obligation: Within this period, you must ordinarily reside in Australia for a continuous period of at least 6 months.
In other words, even if you are a citizen, if you do not actually live in Australia or your residency period is too short, you risk being treated as a foreign investor and may be liable for significant additional taxes.
⚖️ What New Zealand Citizens Must Watch Out For
Under the previous rules, holding a Subclass 444 visa upon entering Australia made it relatively easy to meet the requirements. However, with this change, the critical issue becomes: “Do you ordinarily reside in Australia?”
| Category | Previous | From 26 Nov 2025 |
|---|---|---|
| Key Criteria | Meeting Subclass 444 Visa requirements | Actual Residency Requirement |
| Details | Holding an SCV visa issued upon entry, etc. | Continuous residence for at least 6 months within 12 months of the transaction |
| Caution | Checking visa status was key | Proof of residency duration and continuity is essential |
Therefore, New Zealand citizens living in NZ who intend to buy a house in Victoria for investment purposes, or those who travel frequently between Australia and New Zealand and cannot meet the 6-month continuous residency requirement, must exercise extreme caution.
💡 Advice from Solomon Law Firm
Legal regulations are becoming increasingly specific, and when it comes to taxes, a single misjudgment can lead to substantial financial loss.
If you are a New Zealand citizen considering purchasing property in Victoria after 26 November 2025, you must consult with a lawyer before signing any contract to ensure you meet the new residency requirements.
SOLOMONS LAWYERS
For the past 17 years, Solomons Lawyers has specialized in resolving complex legal issues related to property and commercial leasing in Victoria. If you need accurate advice regarding these legislative changes, please feel free to contact us at any time.
