Sydney Family Hit with $116,000 Land Tax Bill

An Australian family has been hit with a shocking $116,000 land tax bill after a technicality involving residency requirements. Sydney parents James and Susan, who have two young daughters, shared their story on 2GB’s Ben Fordham Live, revealing how they received the hefty tax bill on their family home due to Susan’s residency status.

Susan, originally from Scotland and a permanent resident of Australia, had to leave the country to care for her sick mother. Unfortunately, Susan spent over nine months in Scotland, which meant she was out of Australia for more than 270 days—breaking the rule that requires permanent residents to spend at least 200 continuous days in the country to avoid the land tax surcharge.

According to NSW law, "foreign buyers" who own property in the state must pay an extra land tax based on the value of their property—8% if the property was purchased between July 1, 2017, and December 31, 2024. However, permanent residents are exempt from this tax if they meet the 200-day rule.

Susan explained to Fordham, “We certainly didn’t know anything about it. We went to care for Mum… we had no choice.” She added that her mother had been diagnosed in Australia, and Susan had to fly her back to Scotland for 24-hour care. “When we came back… it was already a traumatic time, and three days later, we landed with a letter saying that we owed this fine.”

The family was blindsided by the tax bill and Susan applied to have it waived, citing "exceptional circumstances," but her request was rejected by Revenue NSW.

James, who is Australian-born, said he never imagined his wife would be considered a "foreigner" under the law. "We don’t consider ourselves foreigners, so it’s not something we thought about, really," he said. Susan echoed that sentiment, saying, “It’s a beautiful country. We call it our home. I don’t consider ourselves foreigners. It’s certainly not an investment property, it’s our family home.”

Now, the couple is facing the challenge of paying off the bill, with $11,000 due each month, and they’ve already paid $33,000 so far. James said, “I don’t understand why our situation isn’t exceptional, because I can’t think of anything worse.”

It’s a tough situation for the family, and they're hoping for some resolution soon.