An Australian family has been shocked to receive a massive $116,000 land tax bill due to foreign investor regulations after they temporarily left the country to care for a sick relative. Sydney parents James and Susan, who have two daughters, were revisiting Scotland when Revenue NSW notified them that Susan, a Scottish-born permanent resident, had not met the requirement of residing in Australia for 200 consecutive days.
Susan was away for over nine months caring for her mother, leading to her being classified as a “foreign buyer” under NSW law, which imposes an eight per cent tax on property values for non-residents. Susan applied for an exemption based on “exceptional circumstances,” but her request was denied.
James, who is an Australian citizen, expressed disbelief at Susan’s classification as a foreigner, stating, “We don’t consider ourselves foreigners… it’s our family home.” The couple is currently facing mounting pressure, needing to pay $11,000 monthly to manage the tax bill, of which they have already paid $33,000. They reached out to 2GB’s Ben Fordham to share their distressing experience, feeling blindsided by the sudden financial burden at a challenging time.