Levande responds to NSW foreign stamp duty exemption

The NSW Government today announced it will now grant exemptions from the Foreign Owner Stamp Duty surcharge, removing a significant barrier to new housing supply.

From 1 July 2026, the 9 per cent surcharge duty will be removed for large-scale institutional projects, a move designed to attract global capital and accelerate delivery of new housing for renters and seniors.

The surcharg has for years imposed a significant cost burden on foreign-owned retirement living and aged care providers, despite their long-term investment in Australian communities and the ageing population.

In March, Michelle Bruggeman, Chief Operating Officer at EQT-owned village operator Levande, said foreign owner surcharge taxes were holding back their development pipeline.

The following month, Levande Chief Executive Officer Kevin McCoy said he would not allow any land to be acquired in NSW for a retirement village while the foreign ownership taxes were in place.

Levande today said the State Government’s decision, to be detailed in next Tuesday’s (23 June) Budget, will help unlock new development opportunities and accelerate the delivery of much-needed housing for older Australians.

Kevin said the reform was a practical and overdue step to align tax policy with housing outcomes.

“This is a sensible, targeted decision that recognises the difference between speculative investors and long-term housing providers,” he said.

“We thank the NSW Treasurer Daniel Mookhey and Minister for Finance and Natural Resources Courtney Houssos for listening to industry and acting to remove a clear barrier to investment.”

The change follows sustained advocacy by Levande and the wider retirement living sector, highlighting the unintended consequences of the surcharge on housing supply.

Developments unfeasible thanks to surcharges

Under the previous regime, the impact on project feasibility was significant.

An example prepared by Levande showed that on a typical metropolitan Sydney acquisition, a $65 million site would attract approximately $4.5 million in standard stamp duty. However, the additional foreign owner surcharge added a further $5.85 million.

When combined with foreign land tax surcharges, this pushed the total project cost from around $70.7 million to nearly $79.5 million, rendering the project unfeasible.

“This is not theoretical. These settings directly stopped projects proceeding,” Kevin said.

“We’ve had to walk away from otherwise viable projects because the surcharge tipped them beyond feasibility.”

Kevin said removing the surcharge would allow Levande to reinvest capital into new developments in NSW, supporting jobs, construction activity and better housing outcomes for older Australians.

“Retirement living delivers more than homes – it frees up larger houses for families, supports independent living, and reduces pressure on the health and aged care systems,” he said.

“We are aligned with government in the goal of delivering more homes, faster. This change goes a long way towards making that possible.”

Levande reconfirmed its commitment to working with the NSW Government to accelerate delivery across its development pipeline.

Property Council NSW Executive Director Katie Stevenson said Build To Rent and retirement living have a significant role to play in delivering much-needed housing to NSW and are particularly well suited to long-term institutional investment.

“This reform will help unlock projects that have struggled to stack up under previous tax settings, bringing them in line with other diverse housing products such as purpose-built student accommodation that are not subject to the foreign investor surcharge.

“These are exactly the types of developments that deliver stable rental supply and meet emerging community needs — more homes for renters and more choice for older Australians,” she said.