News Blog: Victoria’s New Favourite Export – Shearing New Zealanders at Settlement

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If you’re a New Zealander thinking about buying a property in Victoria, pull up a chair. Australians genuinely love Kiwis. We love your friendliness, your vowels, your rugby dominance, and of course, your sheep.

But the Victorian Government? They don’t see Kiwis as neighbours, cousins, or partners in the great Anzac story. No. They’ve discovered something far more exciting.

They see New Zealanders as cash sheep. And the moment you try to buy a property here, they reach for the shears.

How Did We Get Here?

For years, NZ citizens were treated almost exactly like locals. You could cross the ditch, settle into a Melbourne rental, and buy a property without being slapped with foreign purchaser duty.

Then, somewhere deep inside Treasury, someone realised something life changing:

Kiwis will buy property here… and we’re not charging them extra.

That loophole lasted about five minutes.

The Rule Change Nobody Warned You About

Today, under the Duties Act 2000 (Vic), if you’re a New Zealand citizen you must:

  • Hold a Special Category Visa (SCV), and

  • Be “ordinarily resident” in Australia

or Victoria officially declares you foreign.

Not “foreign-ish”. Not “honorary Aussie”.
Just plain foreign.

And once you’re labelled foreign, the foreign purchaser additional duty lands like a dropped pie – sudden, messy, and expensive.

The Great Kiwi Shearing: Duty Edition

Here’s where the shearing really begins.

If Victoria decides you’re foreign, you get hit with foreign purchaser additional duty. It’s on top of normal stamp duty and based on the full dutiable value of the property.

This isn’t a small nibble at the wool. This is the Government leaning in with both hands like they’re preparing an award-winning fleece for the Royal Melbourne Show.

And the Shearing Doesn’t Stop at Settlement…

If you buy an investment property, the Victorian Government returns every year for a tidy, gentle top-up through the foreign owner land tax surcharge.

Think of it as an annual reminder that although Australians love you… the tax system does not.

The Classic Kiwi Confusion

Every week, Victorian Property Settlements sees NZ clients who are genuinely shocked to learn they’re considered foreign.

Common reactions include:

  • “But my partner’s Australian!”

  • “But I used to live here!”

  • “But we’re practically the same country!”

All lovely sentiments. None recognised by the State Revenue Office.

Want to Avoid the Shearing? Start Here

We’ve put together a full breakdown of the rules, the traps, the residency test, and how to stop Victoria treating you like an unguarded sheep at shearing season.

Read the full guide here:
https://www.victorianpropertysettlements.com.au/nzbuyers

Why This Matters

A Kiwi buyer can be hit with tens of thousands of dollars in unexpected duty simply because they didn’t understand Victoria’s new position.

If you sign a contract first and discover the surcharge later, there is no “bro, please reconsider” button on the Digital Duties system.

Final Word from David Dawn

As someone who has seen hundreds of Kiwis wander into these rules unsuspectingly, my advice is simple:

Before you buy in Victoria, find out whether the Government plans to welcome you as a neighbour… or shear you like livestock.

If you want clarity before signing, Victorian Property Settlements can walk you through the residency rules, the SCV requirements, the surcharge triggers and how to structure your purchase properly.

Call us on 03 9783 0111 or visit the NZ buyer hub:
https://www.victorianpropertysettlements.com.au/nzbuyers