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From settlements on or after 26 November 2025, the Victorian foreign purchaser additional duty test for New Zealand citizens is no longer based only on whether the buyer holds a Special Category Visa (Subclass 444) at settlement. A New Zealand citizen must satisfy the Commissioner that they ordinarily resided, or will ordinarily reside, in Australia for a continuous period of at least six months within the period starting 12 months before settlement and ending 12 months after settlement.
What changed for New Zealand citizens?
The Victorian Parliament passed legislation that may affect New Zealand citizens buying property in Victoria. The State Taxation Acts (Further Amendment) Act 2025 received Royal Assent on 25 November 2025 and changed the rules for New Zealand citizens in relation to foreign purchaser additional duty, often called FPAD.
Before this change, FPAD did not apply if a New Zealand citizen held a Special Category Visa (Subclass 444) at transfer, which means at settlement. From settlements on or after 26 November 2025, the test is different.
The new test looks at whether the New Zealand citizen ordinarily resided, or will ordinarily reside, in Australia for a continuous period of at least six months within the relevant settlement window.
What does the six-month residence test mean?
The six-month residence test looks at the period from 12 months before settlement to 12 months after settlement. Within that window, the New Zealand citizen must satisfy the Commissioner that they ordinarily resided, or will ordinarily reside, in Australia for a continuous period of at least six months.
The SRO explains that ordinarily residing in Australia means you regularly or customarily live here. It does not include a temporary or occasional residence.
For a Melbourne buyer, that means the timing and nature of your move to Australia matter. A short visit, holiday, inspection trip or temporary stay may not be enough. The question is whether Australia is, or will be, the place where you regularly or customarily live for the required continuous six-month period.
When does the new test apply?
The new test applies to all settlements from 26 November 2025.
That settlement date matters. If you are a New Zealand citizen buying in Melbourne, your conveyancer should check the scheduled settlement date and apply the correct rule for that date.
For settlements from 26 November 2025, the focus is no longer simply whether you hold a Special Category Visa (Subclass 444) at settlement. The focus is whether the ordinary residence test is satisfied.
What should New Zealand citizens buying in Melbourne do before signing?
New Zealand citizens buying in Melbourne should check their FPAD position before signing a contract or bidding at auction. The duty impact can be serious, so it is much safer to work through the residence test early rather than leaving it until settlement.
A practical first step is to look at your settlement date and your living plans. Ask:
- Will settlement occur on or after 26 November 2025?
- Have you already lived in Australia continuously for at least six months within the 12 months before settlement?
- If not, will you live in Australia continuously for at least six months within the 12 months after settlement?
- Will your stay amount to ordinary residence, meaning you regularly or customarily live in Australia?
- Do your documents support that position if the Commissioner asks for evidence?
In our practice, we’ve seen New Zealand buyers focus on the visa question and miss the residence question. Under the new SRO position, the residence test is the key issue for FPAD on settlements from 26 November 2025.
What this article does not cover
This article is limited to the SRO page about land transfer duty changes affecting New Zealand citizens. That page deals with foreign purchaser additional duty.
It does not set out the full rules for FIRB approval, the First Home Owner Grant, first home buyer duty exemptions, or every duty concession that might apply to a Victorian purchase. Those issues should be checked separately before you sign, especially if you are buying your first home, buying with another person, buying through a trust, or buying before moving permanently to Australia.
Frequently asked questions
Do New Zealand citizens automatically avoid foreign purchaser additional duty in Victoria?
Not automatically. For settlements from 26 November 2025, a New Zealand citizen must satisfy the Commissioner that they ordinarily resided, or will ordinarily reside, in Australia for a continuous period of at least six months within the period from 12 months before settlement to 12 months after settlement.
Does holding a Special Category Visa (Subclass 444) still decide the FPAD outcome?
For settlements from 26 November 2025, the SRO page says the new test applies. Previously, FPAD did not apply if a New Zealand citizen held a Special Category Visa (Subclass 444) at transfer, being settlement. The new test focuses on ordinary residence in Australia for the required continuous six-month period.
What does ‘ordinarily reside in Australia’ mean?
The SRO says you ordinarily reside in Australia if you regularly or customarily live here. It does not include a temporary or occasional residence.
What settlement dates are affected by the new rule?
The new test applies to all settlements from 26 November 2025. If you are a New Zealand citizen buying in Victoria, the settlement date is the key date for working out whether the new FPAD test applies.
Can a future move to Australia satisfy the test?
Yes, the wording of the SRO page says a New Zealand citizen must satisfy the Commissioner that they ordinarily resided, or will ordinarily reside, in Australia for the required continuous six-month period. That period must fall within the window starting 12 months before settlement and ending 12 months after settlement.
About the Pearson Chambers Conveyancing team
Pearson Chambers Conveyancing is a Melbourne-focused conveyancing firm helping buyers understand contract, settlement and duty issues before they commit. We regularly assist buyers who need practical guidance on how Victorian duty rules apply to their situation. For New Zealand citizens, checking the ordinary residence test early can make a real difference to the purchase process.
Sources we consulted
Need help checking your duty position?
If you are a New Zealand citizen buying property in Melbourne, Pearson Chambers Conveyancing can review your contract and Section 32 statement, check the settlement timing, and help you understand the FPAD issue before you sign.
Email contact@pearsonchambers.com.au to ask about a complimentary Section 32 contract review.
General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.