Victorian Foreign Purchaser Surcharges Class Action

If you purchased property in Victoria, Australia, and are from one of the below eight Relevant Countries, you may have paid invalid property surcharges and could be eligible for compensation.

Claim Overview

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Johnson Winter Slattery, an Australian commercial law firm, has filed a class action against the Victorian State Government and the Commissioner of State Revenue (Victoria) in the Federal Court of Australia. This class action concerns stamp duty and land tax surcharges imposed on foreign property purchasers and owners of Victorian property prior to 1 January 2018.

The class action alleges that certain surcharges were in breach of treaties with eight Relevant Countries. If you are from one of these eight countries and paid a stamp duty or land tax surcharge for liabilities that purportedly arose before 1 January 2018, you may be a group member in the class action.

What is the basis of the claim?

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The treaties between Australia and the eight Relevant Countries contain promises to ensure taxes are equitably imposed.

The class action against the Victorian State Government and the Commissioner of State Revenue (Victoria) alleges that at least two surcharges imposed on foreign property purchasers and owners by the Victorian State Government prior to 1 January 2018 are likely to be inconsistent with those treaties. These surcharges are:

  • Foreign Purchaser Additional Duty (FPAD) – a once-off surcharge imposed at the time of property ownership transfer on acquisitions of residential land in Victoria (in force from 1 July 2015); and
  • Absentee Owner Surcharge (AOS) – a land tax surcharge imposed annually on foreign persons (in force from the 2016 land tax year), (together, the Victorian Surcharges).

The class action alleges that the inconsistency between the Victorian Surcharges and the treaties entitles people from the Relevant Countries to a refund for any surcharges paid to the Victorian State Government for liabilities that purportedly arose prior to 1 January 2018.

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What are the Relevant Countries?

 

Finland
Germany
India
Japan
New Zealand
Norway
South Africa
Switzerland

How do I know if I am eligible?

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Persons (whether an individual or a company) who satisfy the following criteria may be eligible to participate in the class action if:

  • They have paid one or more of the Victorian Surcharges;
  • The purported liability arose prior to 1 January 2018; and
  • They were, at the time the liability arose, a national of one of the eight Relevant Countries, or a company incorporated in, or owned or controlled by residents or companies of, one of the eight Relevant Countries.

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How do I register for the class action?

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Register using the registration form above. Under the orders made by the Federal Court of Australia on 27 October 2026, a group member who completes the registration form is a Registered Group Member.

If an in-principle settlement is reached at the mediation (which is to commence by 7 June 2027) or within 8 weeks of the conclusion of the mediation, the parties intend to ask the Court to limit the benefit of that settlement to group members who registered by 4:00pm AEST on 30 April 2027. If you wish to be able to share in any such settlement, you must register by that time. There is no cost to register.

If you registered on this website before 6 November 2026, you must also complete the Court-approved registration form above.

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Current status of the class action?

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On 15 October 2025, the High Court of Australia handed down the decision in G Global 180Q AUT v Commissioner of State Revenue, Francis Stott v The Commonwealth of Australia & Anor [2025] HCA 39 (Stott v Commonwealth). This decision was determinative of some of the legal issues in this class action.

In brief, the High Court’s decision has the following ramifications for the Victorian proceeding:

  1. the decision has validated the imposition of foreign purchaser additional duty and the foreign land tax surcharge for 1 January 2018 to 8 April 2024 across Australia. This means that a claim for liabilities payable during this period by reason of constitutional invalidity is not possible; and
  2. while foreign purchaser additional duty and the foreign land tax surcharge are valid from 1 January 2018 onwards, a claim may still be possible for liabilities purportedly arising prior to 1 January 2018.

Following the decision of the High Court, the group membership for the Victorian proceeding has been confined to persons who paid one or more of the Victorian Surcharges for liabilities that purportedly arose prior to 1 January 2018.

On 27 October 2026, the Federal Court of Australia made orders for an opt out and registration process, with a view to conducting a mediation by no later than 7 June 2027.

What are my options?

By 4:00pm AEST on 30 April 2027, you may register your claim, opt out of the class action, or do nothing. If you do nothing, you will remain a group member and will be bound by the outcome of the class action, but you may not be able to claim money from any settlement reached at or within 8 weeks of the mediation without the Court’s permission.

How do I opt out?

If you do not wish to remain a group member, you must complete the Opt Out Notice and return it directly to the Victorian Registry of the Federal Court of Australia by email at vicreg@fedcourt.gov.au before 4:00pm AEST on 30 April 2027. If you opt out, you will keep any right to bring your own claim, provided you do so within the time limit applicable to your claim. You should seek independent legal advice before opting out.

Do I need to pay any costs?

No. You are not liable to pay any out-of-pocket legal costs by participating in the class action as a group member. The proceeding is supported by third party litigation funding.

Is this a scam?

No. The notice of opt out and registration has been approved by the Federal Court of Australia.

You can read the notice here: https://www.fedcourt.gov.au/__data/assets/pdf_file/0017/610541/VID134of2024-2026-10-30-Opt-out-and-Registration-Notice.pdf

You can review the Court’s orders here: https://www.comcourts.gov.au/file/Federal/P/VID134/2024/3974727/event/33196151/document/2918714

You can also view the notice on the Victorian State Revenue Office’s website here: https://www.sro.vic.gov.au/fpad-aos-class-action

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Questions

Should you have any questions, please contact fpsclassaction@jws.com.au.

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Contact us

You can email us at fpsclassaction@jws.com.au or fill out the form below.
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